Dave Ramsey Said to Ask These 3 Key Questions When Buying a Car from a Private Seller

Buying a car can be a huge financial burden and, for many people, a car loan is one of the biggest expenses after their mortgage.

Purchasing a used car is one way you can keep vehicle-buying costs down so your car won't do so much damage to your bank account. And if you buy a used car from a private seller instead of a dealer, you may be able to get an even better price. You also take on more risk, though, since you don't have a dealer to go back to and hold accountable if there's an issue.

To help make sure you're making a wise purchase and getting a car you'll be happy with, finance expert Dave Ramsey recommends asking these three questions before moving forward with a sale from a private individual.

1. Why is the car for sale?

Ramsey advises asking the current sellers of the vehicle why they're offloading it, as this can give you some insight into whether there are any potential problems or red flags to be aware of.

"Sometimes the best thing you can do is ask the seller this question, then stand back and let them do the talking," Ramsey said. "This lets you scope things out, get to know the seller, and, obviously, understand the reason they’re selling the car. Maybe their family just welcomed their first child and they need an SUV instead of that two-door coupe -- their car loss is your gain! But if they break out in a sweat or quickly change the subject, little red flags should start waving around in your head."

While asking this question can make sense, the reality is that even most people who are selling a car due to problems are going to have prepared an explanation for why they are selling. So, while you can ask for the info, take it with a grain of salt and don't necessarily assume you're getting honest answers.

2. Do they have the title in hand?

Ramsey recommends asking to physically see the title when you're considering buying a car from a private seller. If they don't have the title, then you won't want to give them any money because the title is how ownership is transferred. Ramsey said to also be on the lookout for whether the car has a salvage or a rebuilt title, since salvage titles can't legally be driven and rebuilt titles mean the car was a salvage vehicle that has been repaired.

Asking this question is absolutely essential, and you do want to insist on seeing the title. Ramsey is right that this can give you a ton of information about the car's history. You'll also want to get the car's VIN and run it through a service like Carfax to make sure there are no accidents or major repairs on its history.

3. How long have they owned the vehicle?

Finally, Ramsey said to ask how long the seller has owned the car. "If someone’s been driving their car for a while without too many problems, it might be a sign that the car is pretty reliable," Ramsey said. "But if someone is trying to sell a car after owning it for only a year or less, they’re probably not happy with the car for some reason."

Ramsey is right that a short ownership history is a red flag that should make you suspicious of any potential problems. Someone who has owned a car for a short time before selling is probably going to lose quite a bit of money on the deal since cars tend to lose value fast, so it's worth looking into why anyone would want to do this.

In addition to asking these questions, it's worth asking if a reliable mechanic can take a look at the car before you buy. If you don't get the all-clear from a professional who can spot major issues, you may end up regretting it if it turns out there are things wrong with the car you didn't anticipate.