AAA EnCompass

Buying a used car from a private seller is a little like shopping at a flea market. There are great deals, and then there's overpriced junk. How do you tell the difference?

The internet has made used-car shopping easier, with websites like www.cars.com, www.edmunds.com and even eBay. These sites allow you to find specific models in a given price range, from private sellers in your own area. Along with more traditional print ads, this can produce a great cross sample of used cars.

When viewing a car, look for potential problems. Poorly fitting doors and paint that doesn't match could indicate the car was in a serious accident. Look for oil spots under the car. Check all the vital fluids—low engine oil, burned transmission fluid and dirty coolant can be warning signs of a general lack of maintenance.

If the car is registered, a road test is the next item on your list. Remember to test all the accessories too—windows, wipers, air conditioning, heater, stereo, lights and horn.

Go with your gut feelings about the honesty of the seller. Be cautious of the person who always seems to have a used car for sale, or whose name is not the same as the one on the car's title. People who pose as private sellers, but sell enough vehicles to be considered a car dealer, are skirting the law.

Before making your final decision, use both the Kelly Blue Book and NADA price guides to establish that the car is reasonably priced for its age and condition, and check its history on CARFAX. All three services can be found on www.aaa.com—click on “Automotive” and choose “Still Shopping.” Also consider having a thorough inspection performed by a qualified technician.

A private seller generally will not be as skilled as a car dealer in negotiating price, but always buy a car with your head and not your heart. When you have agreed on a price, make sure you're closing the deal legally. You must receive the following documents:

The Colorado certificate of title showing the previous owner's name and yours.
A completed odometer disclosure if the vehicle is less than 10 years old.
A current emissions inspection certificate, if you live in an area where this is required.
A bill of sale signed by the seller, showing your name, purchase price, and the vehicle's year, make and VIN.

You must not take the previous owner's license plates. A temporary permit is obtained by taking the above documents to your local DMV, along with proof of insurance.

AAA Connection

AAA Colorado offers auto sales and leasing services through Colorado AutoSource.