Buying a car · Guide for New Hampshire
Dealer or private seller: pros, cons and traps of each
Neither is better by definition. Each protects you from something and exposes you to something else. Here is what changes.
Dealer and private purchases can differ in price, documentation and warranty terms. Compare the complete agreement and vehicle condition before deciding.
Quick comparison
| Licensed dealer | Private seller | |
|---|---|---|
| Price | Compare the written total price and any documentation fee (doc fee). We found no general cap in New Hampshire law on the dealer documentation fee. What is capped is the title paperwork: for preparing the title application and remitting the fees, a dealer or a lender may charge at most $2, and charging more is a violation; the Town or City Clerk charges another $2 for that same work (RSA 261:4, IV). If the dealer registers the car electronically, the “optional EVR charge” must be stated separately in the contract and on a separate document you sign, and you can refuse to pay it; if you refuse, the dealer is not required to register or title the car for you (RSA 261:74-o). Ask for the final price in writing, with every fee, before you sign. | Compare the agreed price and any applicable taxes or transfer costs. |
| Warranty | The Buyers Guide states dealer warranty coverage where the federal rule applies. Maine and Wisconsin use their own versions; state-law rights may add protection. | Review the contract, remaining warranties and applicable rights; keep promises in writing. |
| Paperwork | Ask which filings the dealer handles, which documents you receive and when you may legally drive. | You do the transfer under the deadline and conditions for your transaction. At the Town Clerk or City Clerk office of the town or city where you live. Only there can the title application (TDMV 23A) be filled out. You pay the town part of the registration first; then the clerk (if it is a state agent) or a DMV office does the state part. If you buy from a dealer, the dealer sends the application to the DMV within 10 days of the sale, or within 40 days if a lender holds the title (RSA 261:4, II). |
| Financing | Compare the written financing offer with alternatives before deciding. | You bring the money or your own loan. |
| If something goes wrong | You have someone to complain to: the dealer's license with NH DMV, the state deceptive-practices law, reviews. | Complaining is hard and expensive. Your protection is the inspection beforehand. |
| Vehicle history | Check the applicable dealer disclosure rules (RSA 261:22). | Private-seller duties can differ; review the state disclosure information and verify the title yourself. |
| Negotiation | Professional. More practice than you. | Emotional. Sometimes in your favor, sometimes not. |
Dealer traps
- The payment instead of the price. "How much do you want to pay per month?" turns an expensive car into an "affordable" one by stretching the term. Negotiate the total price of the car, then the financing.
- Add-on charges. Doc fee, "prep," "paint protection," "VIN etching," extended warranties. Ask which are optional. We found no general cap in New Hampshire law on the dealer documentation fee. What is capped is the title paperwork: for preparing the title application and remitting the fees, a dealer or a lender may charge at most $2, and charging more is a violation; the Town or City Clerk charges another $2 for that same work (RSA 261:4, IV). If the dealer registers the car electronically, the “optional EVR charge” must be stated separately in the contract and on a separate document you sign, and you can refuse to pay it; if you refuse, the dealer is not required to register or title the car for you (RSA 261:74-o). Ask for the final price in writing, with every fee, before you sign.
- The yo-yo. They let you leave with the car "approved" and call days later: financing "didn't go through," you must re-sign at a higher rate. Sign nothing conditional; if financing is not closed, the car stays.
- Blended trade-in. They value your car high and raise the price of the new one, or the reverse. Negotiate both separately and in writing.
- "Certified" as a sales pitch. A factory certification has value; the dealer's own "certification" is worth whatever its contract says. Read what it covers.
Private-seller traps
- The curbstoner. Someone who buys cars at auction and sells them as if they were their own, without a license. Signs: the title is not in their name, they are selling several cars, they want to meet in a parking lot. Check whether the activity requires a license and verify the title and identity before paying.
- Title with a lien. The car has an outstanding loan. Confirm with the lender and title agency how the lien is recorded or released before paying.
- Open title. The seller hands you a title signed by a previous owner with the buyer left blank. An incomplete ownership chain can prevent the transfer; confirm the required documents before paying.
- The payment. Don't bring cash to a stranger. Close the transfer at the tax collector or a bank, with the title in hand.
- The solo test drive. For them it is a theft risk; for you, an uninsured car. Both ride along, with the owner's license and insurance current.
What does not change
In both cases: VIN checked, title reviewed, history on the VIN and an inspection by a mechanic you choose. The dealer gives you more paper; paper does not inspect the transmission.
Rule of thumbChoose based on written terms, documentation, an independent inspection and your ability to complete the transfer; seller type guarantees neither price nor mechanical condition.
From a guide to the individual vehicle
Sources
- FTC — Used Car Rule and the Buyers Guide
- FTC — Comprar un carro usado (en español)
- RSA 261:4, IV — Application for certificate; $2 maximum preparation fee
- New Hampshire Department of Safety, Division of Motor Vehicles
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.
Keep reading
You know what to look for. Now look at that specific car.
Free vehicle identity, no account needed. Reports from $4.99.