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Buying a used car from an individual is a little different from buying a car from a used car dealership. The interest rate for person-to-person used auto loans is usually higher than the interest rate of a used auto loan from a dealership. You also won't be able to roll any extra costs into the balance of the loan. In other words, you will have to pay for extended warranties, life or disability insurance, taxes, and filing fees on your own. The person selling the car must be the title holder and therefore legally able to sell the car. There are also extra steps which need to be taken if the current owner still has a loan out on the car. None of these steps are very complicated, though, so you shouldn't allow them to stop you from buying a used car from another person.