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How to Safely Buy a Used Car on Craigslist

How to Safely Buy a Used Car on Craigslist

So you’re in the market for a used car and you’ve decided to turn to Craigslist. Maybe you want to have the flexibility of negotiating a great deal, or perhaps you just want to avoid pushy or sketchy used car salespeople. Great idea! But you’re unsure of how to go about looking for the right car or maybe you’re nervous about being stuck with a lemon. You’re not alone.

Here are some tips and tricks for protecting yourself when buying a used car from Craigslist:

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What the law says:

I’m sure you’ve heard of lemon laws which provide protection to consumers who buy used cars that have been misrepresented as being in good condition or otherwise fail to meet quality and performance standards. But did you know that lemon laws only apply to auto dealers in most states?

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That’s right, there is almost no legal protection when you’re buying from a private seller. The large majority of states view private car sales as “as is” sales. That means that whatever condition the car is in when you receive it is your problem to deal with. For the most part, used private car sales are “buyer beware”.

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Still, there are basic ways to protect yourself from getting a dud, from being tricked by sneaky private sellers, and even ways to secure possible legal recourse if something does goes wrong with the sale.

Rules to follow:

  • Always get it in writing. Whether it’s a promise of the condition of the car on the whole or the condition of a particular part or system, print out the Craigslist ad before you ever contact the buyer. Pay special attention to listings that have promises of new or recently repaired parts. Get evidence of the promises they are making. Keep any and all correspondence in writing, whether it be through email or text message. Secure a paper trail.
  • Always ask important questions before you go to inspect the car. Ask if it has had repairs recently and where they were done. Ask for a copy of receipts for proof. Ask if the seller has had any issues with the car. Ask for the VIN if you want to go the extra mile and do an online check like CarFax. Make sure the seller’s answers are in written form, if you ever need to reference them later.
  • Always ask to test drive. Not every private seller is comfortable allowing this, because if you’re test driving their vehicle and something happens to it, the seller is on the hook legally and financially. But it doesn’t hurt to ask.
  • Never buy a car without having a mechanic inspect it. If the mechanic finds issues with the car, ask him or her to itemize their findings on the inspection report. Use the issues as a point of negotiations. Often the seller wants to get rid of the car, so they may be willing to work with you on splitting the repair bill or lowering the purchase price of the car.
  • Never let the seller choose the mechanic. You don’t want to take the chance that the mechanic is actually the seller’s buddy who may be willing to fudge information to help a friend. Always choose a mechanic you trust. You may have to foot the inspection bill yourself, but it is money well-spent.
  • Never complete a private sale without a receipt. It doesn’t matter if the receipt is written in crayon on a piece of toilet paper. A receipt is needed to prove what you paid, when you paid it, and to verify the condition of the car. Make sure both you and the seller signs and dates the receipt. A receipt may make or break your case in civil court.
  • Never pay for a private sale in cash. I know cash can be a powerful tool in price negotiations, but there is no way to track how much cash you paid and when, aside from your word. Make sure you pay in a way that’s easy to track, like PayPal or by check.

Signs you need to walk away:

Here are some serious signs that you may just need to walk away:

  • The seller can’t produce a title.
  • The title the seller produces looks sketchy.
  • The title shows a lien on the car whose status the seller won’t or can’t verify.
  • There are signs of water damage in the car (new upholstery, rust under the seats, waterlines).
  • The car has fresh paint (a sign of covering up damage after an accident).
  • The 17 digit VIN on the dashboard doesn’t match the VIN on the car door (a sign the car was stolen).
  • There are signs of fluid leaks around the car which is an indicator of a major problem.
  • The seller is jerking you around when it comes to arranging an meeting, test drive, or inspection with a mechanic. If the seller has nothing to hide, then they should be willing to work with you.

When it comes to a private used car sale, check the laws in your state by visiting your DMV’s website or calling your local DMV chapter. Remember to always take safeguards to protect yourself and don’t let the buyer pressure you in any way. Be prepared to negotiate and be prepared to walk away. If you put yourself first, you should be able to successfully buy a safe used car from Craigslist.

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

Reference

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