cars. TIP: Exercise the same caution when looking at private party^
Pay for an independent inspection, check the CARFAX and AutoCheckreports and appraise the body or find a body shop to see if it’s been
painted.
When it comes time to complete the transactions, there are a fewdifferences from buying at a dealer. They have to complete all the title (^)
paperwork and file it with the appropriate government agencies; in a privateparty transaction, you’re on your own.
The regulations vary state by state, but in general, a generic Bill of Sale(available from DMV; an example is shown below) is the binding legal
document that transfers ownership from the car’s owner to you. If they ownthe car outright, no cash should trade hands without you getting the title
right away.
There’s a caveat: Some states let the owner keep the title even if there’s aloan. In that case, there will be a Lien Release document, which the private (^)
party seller gets when the vehicle is paid off.