Red flags that say 'walk away' from a private car sale

Buying a used car from a private seller will virtually guarantee you a rock-bottom price – no dealer markup or advertising built into the sticker, no high-pressure pitches to buy expensive add-ons. Thousands of private car sales go through every day without a hitch, and most gearheads wouldn't buy a car any other way. 

But what if you're no expert on cars? Or negotiating? Or spotting a scam? Then the money you save also comes with risk. That's because unlike car dealers, private sellers don't offer you any recourse if you're unsatisfied with your purchase, even if you find out later that the car has big problems. You'll also need to handle all the paperwork yourself, including transferring the title and registration, which can get messy if things aren't in order on the seller's end.

Here are six reasons to back out of a private used-car deal (the first four happen before you even see the car): 

1. The deal is too good to be true or comes with a "cash" catch. There is such a thing as a motivated seller, but if the car is mechanically sound and its ownership is legitimate, there's no good reason for someone to sell it for substantially less than it's worth. You can easily check its fair value online with sites like Kelley Blue Book. Also beware if the seller insists you pay cash. Walk away if they won't accept a cashier's check made out to the agreed price. 
   

2. The seller can't answer basic questions about the car. Can you show me service records on the car? Who owned it before you? Why are you selling it? What parts aren't original to the car? Vague answers could point to a "curbstoner," an independent car dealer who picks up cars at auctions, makes minor repairs and flips them, posing as an ordinary private seller. Another way to spot a curbstoner? When you contact them, just say, "I'm interested in the car you have advertised." If they respond, "Which one?" it's likely a curbstone operation. 

3. The car's VIN doesn't check out. Ask the seller for the car's VIN before you agree to meet. By entering the car's Vehicle Identification Number (VIN) into a website like Carfax or AutoCheck, you can find out how many owners it's had, if it's been in an accident, whether it has outstanding recalls and much more. Especially important is whether the title is marked "Salvage" or "Rebuilt," which tells you that an insurance company has declared the car a total loss. Like many insurance companies, PEMCO does not accept vehicles with branded titles. Besides having more severe losses compared with other cars, they have safety and mechanical concerns that can impact the well-being of everyone on the road. Branded titles identify vehicles as "totaled" in addition to other notations including "salvage," "junk," "dismantled," "flood," "fire" and "hail." For vehicles with a "Rebuilt" or "Reconstructed" title, we can't offer physical damage coverage (collision, comprehensive, towing and rental reimbursement).
   

4. The seller refuses to meet you in a public location or at a time that allows you to bring a friend. Never go alone to meet with a seller you don't know, and before you and your friend get in the car with the seller, take a picture of their ID and email it to another friend or relative. (The seller doesn't know you either, so they may want to do the same with you and your friend!) The ideal meeting place might be your mechanic's shop, where you've booked an appointment for a pre-purchase inspection. If you're serious about the car after you test drive it (more about that below), go through with the inspection. And a bonus for meeting at your mechanic's shop? If the seller knows there's a problem with the car that would likely be discovered, they'll save themselves (and you) a wasted trip and simply decline. 
   

5. The seller's ID doesn't match the name on the title and registration or the seller doesn't have the title. That could be a tipoff to a stolen car. Also, beware if a financing company is listed on the title. That means the seller doesn't own the car outright. Even if the seller shows you documentation stating that the car is paid off, call the finance company to verify. Look over the title carefully. It's relatively easy for counterfeiters to create a convincing-looking title to hide a lienholder or the actual registered owner. Even a legitimate title may be "washed" clean of markers like salvage or rebuilt by repeatedly relicensing the car in different states. (More about titles below.) 
   

6. The car hints at a hard life. If the car seems overly worn relative to the mileage displayed, it could indicate the odometer has been rolled back. Mismatched carpet or upholstery could be a sign of repairs after the car suffered flood damage. If all looks good at first glance, check the lights, heater, air conditioning, windows, blinkers, wipers, navigation system and radio before moving on to the test drive. Once you're on the road, pay special attention to odd noises, stalling, steering that pulls to one side, rough shifting or smoking. If you don't notice any problems, hand over the car to your mechanic for a professional once-over.