Buying a car privately
Useful tips and advice on what you should consider when buying a car on the private market.
You can save a lot of money by handling the process yourself when you need to buy a car privately. If you do a bit of groundwork, you have the opportunity to make a good deal in the used car market and ensure a secure trade. We take you through what you should consider when buying a car, such as the purchase agreement for the car, how the car should be paid for, which insurance policies you need, who re-registers the car, along with other tips such as checking financial encumbrances on the car and vehicle information.
Check vehicle information
Before you buy a used car privately, you should check the vehicle information to ensure that the details about the car are correct and reliable. This includes checking the mileage, service history, any damage or accidents, and whether the car is reported stolen. It is wise to check any car you are considering buying as an extra peace of mind that you have the correct owner and information. You can check vehicle information with the Norwegian Public Roads Administration.
Check for charges on the car
In addition to checking that all information about the car and ownership is correct, it is important to check whether there are any charges attached to the car. A charge is a financial obligation registered on the car, for example a loan or debt that has not been paid by the previous owner. It is important to be aware of any charges on the car so that you do not end up with the financial obligation or lose the car due to a lien or forced sale. You can check charges on the car with the Brønnøysund Register Centre through a service from the Norwegian Public Roads Administration.
Draw up a purchase agreement
When you buy a car privately, it is important to draw up a purchase agreement for the vehicle. This is a legally binding agreement between buyer and seller that sets out the terms of the sale. The purchase agreement should include information about the parties involved, details about the vehicle, payment terms, price and any warranties or conditions. It is also advisable to include a clause stating that the sale is conditional upon a successful check of the vehicle information and a possible inspection of the car. A good contract provides greater peace of mind for both the seller and you as the buyer.
Consider car loans and financing options
If you need financing for your car purchase, it is important to consider the different loan options. It is important to compare loan conditions and payment terms to find the solution that suits you best. Set up a budget to double-check that you can afford the estimated monthly repayments. You can also try to increase your home loan and use this money for the car purchase if you have some savings and only need a portion of the purchase price. If you are unsure how much you can borrow, you can Test and see loan conditions in the car loan calculator.
Tips for you when you need to sell your car
It can be worthwhile to take on the job of selling the car yourself
Choose the right car insurance for you
Car insurance is mandatory by law in Norway, and it is important that the car is insured before you start using it. Even though insurance is mandatory, it does not mean you must have all types of cover. You must have liability insurance, which means you are covered for damage to others' property but not your own car. If you also need cover for your own car, you will require mini comprehensive insurance, semi-comprehensive insurance or fully comprehensive insurance. You can see the benefits and what the different insurance policies cover to find what suits you best.
Re-registering the car in your name
Once you have purchased the car, it is important to have it re-registered in your name. This is the process that makes you the rightful owner of the car. It is the seller of the car who must submit notification of sale and re-registration of the car, and you as the buyer will receive an SMS with a link where you approve the purchase. It is you as the buyer who is responsible for paying for the re-registration of the car. Remember the necessary documentation such as vehicle registration certificate, proof of identity and purchase agreement.
We hope this has made you a little more confident in the process of buying a car on the private market. Always check for encumbrances on the car, draw up a purchase agreement, consider financing options, choose the right car insurance and register it before using the car. Check vehicle information for extra peace of mind and ensure correct re-registration of the car.