Paying For A Car When Purchasing It Online

Submitted by: Ryan Letermen

There are two methods for paying for any vehicle you purchase, whether in the dealership or with a private seller: cash and financing.

If you have the necessary cash, good for you as this puts you in command. If you can find a very motivated seller and let him know you intend to pay cash for the car, you can very often get it for way less than the asking price.

Just because you pay cash and get a fine deal doesn’t negate your obligation to yourself to thoroughly inspect the car and the seller. You will need to do a test drive, check out the title document and a Carfax or similar history of maintenance report.

Should all inspections say go, tell the seller you will meet him at your bank at a specified time and day. Ask him to bring a Bill of Sale and the original title document so he can sign it over to you. You will then give him a Certified Check drawn from your bank where the meeting takes place.

When speaking about the Certified Check instead of outright cash, we are assuming the car is priced at way more than say $500.00. Cash is fine for smallish amounts. You just don’t want to hand over $10,000 in cash to a stranger for a strange vehicle as you have no recourse should something go wrong.

If the seller looks askance at your plan of giving him a Certified Check, find out why. On the other hand, don’t say anything. Just tell him that is the way you do business with everyone.

Any bank meeting between you and the seller should be transacted in a spot where the bank’s security cameras can tape the entire transaction.

When you are paying cash at a dealership, you will want to know the final amount so you can bring back the check. Some car dealers will accept a personal check and then have their cashier check the funds at your bank and put a hold on them.

Be sure to read over your sales agreement carefully, because they can and do add extras that you are not aware of.

If your purchase is to be financed, before you even begin searching for a car, tell your lender exactly what type of car you are in the market for. They will tell you the usual amount of loan they make on such a car so you can figure what your down payment will be.

Also inform your lender that you are purchasing from a private party and find out their rules and regulations governing such a purchase. Many times, they will deal directly with the seller after you plunk down your down payment with them.

Even if you are going to make your purchase from a dealer, it is wise to have your financing in hand before you shop. You know what you can afford and exactly what your interest rate is.

Sales people and finance managers at the car dealers always try to increase your interest rate when you finance through them because they earn commission when they sell for over their backer’s stated interest.

About the Author: Ryan is an accomplished writer and editor. He spends the majority of his time reading, writing, or just surfing the web.Are you curious about questions like, just how do I

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