Book Opener

Buying from a Private PartyYou might find the lowest price for a car by buying from a privateparty. Buying from a friend is usually best because he or she can fillyou in on the vehicle’s history. Buying from a stranger can be riskybecause private parties do not provide the implied warranty of merchantability.You must buy the car “as is” and will have no recourse ifsomething goes wrong.An exception occurs if the seller gives you an express warranty. Forexample, the courts have held that a statement by the seller that a car isin good condition and runs properly amounts to an express warranty. Thiswarranty prevails over a further statement that the car is sold “as is.”Other pitfalls in buying from a private party include the possibilitythat the car may have been stolen. In this case, a bank or loan companymay have the right to repossess , or take back the car, regardless of whopresently owns it. A repossessed vehicle purchased from a bank orfinance company may be a good buy. However, sellers of repossessedvehicles give no warranty, either express or implied.Before you buy, be sure to:l Inspect the vehicle carefully or have it inspected by a mechanic.l Test-drive the vehicle.l Ask for the vehicle’s maintenance record.l Talk to previous owners.l Ask to see the certificate of title.Be sure that the name of the person selling the vehicle appears onthe certificate of title. Usually, the names of persons or institutions holdingliens on the vehicle (the right to repossess it) are written on the backof the certificate. Lien holders often havepossession of the certificate of title. Visit thecourt clerk’s office in the seller’s communityand ask if there are any liens filed thereunder the seller’s name. Liens, or securityinterests, are explained in Chapter 22.346 Unit 3: Understanding Consumer LawPRIVATE PARTIESBuying a pre-owned vehiclefrom a private party can be risky.What can you do to protectyourself before you buy avehicle from a private party?