Paying cash for a used car?
I am in the state of New Jersey and planning to buy a 06 honda civic from a private seller. The civic has a 80000 miles on it. Besides that, everything seems to be good.
1) The offer price is $8400. Is it a good offer?
2) If I am going to pay cash, is it safe? (The seller will sign a receipt for me stating that he had recieved my cash of $8400 after I paid him cash)
3) How do I make sure the ownership of the car would transfer to me? Does he only need to sign the back of the title? Do I need the copy of his driver license of any other documents?
Thanks!
1) The most basic 06 Honda Civic with 80k miles retails for $10,000 in excellent condition. Test drive the hell out of that car. You're paying a lot for it, you may as well make sure everything works. Let the seller ride with you of course. It seems like a good deal.
2) Remember you still have to pay tax on the $8,400 when you register it. Have the seller write up a bill of sale that says that the car needs an engine or transmission or something and have him leave the price on the back of the title blank. Then you fill in the amount. I would keep it at around $1,500 so that it doesn't appear suspicious. That way you pay a lot less in taxes.
3) Make sure that it is not an open title. Make sure that it is not a salvage title. Make sure the seller's name is on the front of the title and also make sure there is no lien on it. I would get a copy of his/her driver's license just in case there are any problems and you have to contact him/her. You will need to write up a bill of sale. You can do it on a blank piece of paper. Just both your names, the VIN and mileage and everything that seems necessary and both of you sign it.
Make sure he writes the mileage on the back of the title and checks the box to certify that it is the correct mileage.
