While many states have lemon laws, these usually apply to car dealers, not private-party sellers.
Thankfully, you can take steps to protect yourself when buying from a private party. PrivateAuto offers vehicle history reports with all premium listings, and also has identity verification. These measures cut down significantly on fraudsters—but it always pays to be vigilant.
Are private car purchases better?
Are Private Car Purchases Better?
Buying from an individual can be a smart way to get more bang for your buck. Here are the advantages of skipping the dealership and buying from a private party:
- Dealerships charge documentation fees above and beyond all the other taxes and fees you have to pay (the other taxes and fees are exactly the same whether you buy from a dealer or a private seller, by the way). Documentation fees can be as high as $995.
- Dealerships usually have higher prices on comparable vehicles. Their business model is built around buying low and selling high to generate the spread that allows them to stay in business. To get the best deals, avoid the middleman and deal directly with private sellers.
- There are a lot more private-party cars for sale than there are dealership cars, so you have access to a much wider selection.
- Many private-party vehicles have been owned and maintained by the same person since they were new. A private seller may have a lot more insight into the vehicle’s condition and maintenance history than a dealer does.
When you buy a used car from a private seller on PrivateAuto, you often get a better deal.
We admit that buying from a dealer provides a level of convenience that is not typically available when buying from a private seller. That is, after all, why we exist. We give you dealer-like convenience while also allowing you to transact with regular people like yourself.
Cutting out the middleman unlocks major savings. Our self-serve technology solutions—verified IDs, vehicle history reports, secure messaging, electronic docu-signing, instant fund transfers—give you dealer-like convenience in the palm of your hand. Buy directly from motivated sellers on your terms.
How can I avoid fraud?
How Can I Avoid Vehicle Fraud?
When purchasing a car privately, be on the lookout for common scams such as faked vehicle histories, odometer tampering, or title scams.
Savvy buyers follow these protocols:
- Real-time VIN checks can surface reported accidents, salvage titles, or other problems
- Mileage analysis against vehicle records to detect odometer rollbacks
- Authentication of the seller’s legal title and registration status
- Review of any existing liens or loans against the vehicle
- Do the transaction on PrivateAuto to take advantage of identity verification, instant payments, and other safeguards
- Vehicle history reports (included with all PrivateAuto premium listings)
Test drive and inspect
Test Drive and Inspect
When buying a used car from a private seller, you have the right to test drive the vehicle and have your mechanic inspect it before releasing the funds to the seller. Test driving allows you to gauge performance, comfort, and identify any potential mechanical issues.
An inspection by a trusted mechanic can uncover problems like:
1. Leaks
2. Worn parts
3. Accident repairs
4. Damage indications
With PrivateAuto, you can schedule test drives directly within the app for added safety and convenience. Our sellers are verified for identity, so you avoid high-pressure sales tactics and scam risks. Take advantage of built-in test drive scheduling to evaluate motor vehicles on your own terms.
Don’t finalize a purchase until you or a mechanic have given the car a thorough inspection. Use PrivateAuto’s protections while exercising your right to confirm the condition before handing over your money.
Check the odometer disclosure
Check the Odometer Disclosure
When purchasing a used car, be sure to carefully check the odometer disclosure from the seller. Inaccurate or tampered odometer readings are not only illegal but can greatly impact a vehicle’s value.
Under the Federal Odometer Act, sellers must disclose the true mileage to buyers. If they misrepresent the numbers, it’s considered odometer fraud, which is a criminal offense. This includes tactics like tampering to roll back the odometer or disconnecting it so mileage isn’t recorded.
Always get a vehicle history report to check for odometer discrepancies and signs of tampering. Accurate mileage allows you to fairly assess the condition and value of a vehicle. Don’t get duped by odometer fraud when buying a used car.
If you are not confident in your skills, have the records examined by your mechanic to ensure everything is legal.
Check vehicle documentation
Check Vehicle Documentation
Check your specific state laws to ensure you get all the mandatory paperwork when buying privately. This documentation is crucial to legally transfer ownership.
Here are some common documents that are typically needed:
- Bill of sale
- Vehicle title
- Registration
- Release of liability
- Odometer reading statement
- Proof of auto insurance
- Valid state ID cards
- Inspection forms
What is PrivateAuto Pay?
What is PrivateAuto Pay?
PrivateAuto Pay is the only safe, instantaneous, convenient, and contactless payment option for a used car transaction over $5,000. PrivateAuto Pay allows you to have escrow-like safeguards for free.
When it comes to buying and paying for your car, the benefits of PrivateAuto Pay include.
- Conclude the entire transaction when you meet the seller for a test drive.
Private Auto allows you to purchase the vehicle quickly, safely, and easily. Protect yourself by choosing a secure, instantaneous, and convenient online platform.
If you’ve already found a car that you want to buy—even if it’s not listed for sale on PrivateAuto—you can enjoy the power and convenience of PrivateAuto’s transactional infrastructure to get the deal done.
DealNow allows you to skip the initial shopping and negotiation processes and go straight to the transaction.
Whether your dream car is listed on Facebook Marketplace or Craigslist—or is being sold by a friend of a friend, or being auctioned on a site such as Bring a Trailer—you can invite the seller to DealNow.
What if I bought a bad car from a private seller?
What Do I Do if I Bought a Faulty Car From a Private Seller?
Buying a used car from a private seller does not come with many legal consumer protections. These are “as-is” sales, which means you don’t have any assurances.
Most private sellers are not intentionally trying to scam buyers. They are regular people like you, simply trying to sell a quality used car.
The following precautions should help protect against the minority of fraudsters who are trying to pull one over on you:
1. Thoroughly inspect any car and test drive it.
2. Get a vehicle history report, which PrivateAuto provides with all premium listings, to uncover any salvage titles, accidents, or other events.
3. Purchase via PrivateAuto. We verify seller identities, which discourages outright scammers just looking to offload a lemon.
If problems do arise post-purchase, it does not necessarily mean the seller tricked you. It could be a coincidence. You can try to ask the seller to help with repairs, but you’ll be at their mercy.
How do I buy a car with a physical cash?
How Do I Buy a Car With Physical Cash?
Almost every private seller accepts cash for their car. Cold, hard cash is almost universally loved and is immediate (no waiting for a check to clear or a wire transfer to go through).
There are advantages and drawbacks to paying cash for large transactions.
PrivateAuto Pay has all the advantages of cash with none of the disadvantages.
If you buy a car with physical cash, here are the steps you’ll go through:
1. Withdraw large sums of cash over multiple days, if banks even allow it. If you’re doing this on the weekend, good luck!
2. Transport large quantities of bills, making yourself a target for theft.
3. Meet a stranger in a random location with no protection.
4. Spend what seems like an eternity manually counting and verifying stacks of cash under the burning eyes of the stranger.
5. Hand over the cash, crossing your fingers that the seller will sign over the title and not doublecross you.
6. Hope or pray if you encounter difficulties.
Forget the inconveniences of cash when you pay with PrivateAuto Pay.
Find your Dream Vehicle on PrivateAuto
Here’s the PrivateAuto car buying process, and how we make it easier.
Browse used cars for sale on PrivateAuto.
1. Make offers on cars you like (PrivateAuto is one of the only platforms that allows you to offer what you’re willing to pay).
2. Message the owner and schedule a test drive without every giving out your contact info.
3. Meet up, inspect the car, and sign documents with the owner.
4. Send funds instantly.
5. Drive away with your new-to-you car.
6. Complete the title transfer and registration at your local DMV.
Looking to sell your car? Create a listing on PrivateAuto and connect with interested buyers today!
FAQ on Rights When Buying a Used Car From a Private Seller
Is it illegal to sell the vehicle without disclosing its problems?
In general, it is illegal for a private seller to intentionally hide or fail to disclose known major defects or problems with a used vehicle they are selling. This is considered fraud. However, it is often difficult to prove fraud and expensive to litigate.
1. Private sellers should disclose major issues like salvage titles, significant accidents, frame damage, faulty odometers, emissions system problems, or flood damage.
2. Private sellers generally don’t have to provide a vehicle history report. However, knowingly providing false information if asked is illegal.
3. State “lemon laws” that provide consumer protection for defective vehicles usually only apply to sales by licensed dealers, not private parties.
4. Some states require private sellers to provide prospective buyers with a specific disclosure form documenting vehicle condition, accidents, etc. Failing to provide the form can carry penalties.
5. There is less transparency and recourse for buyers with private sales compared to dealer sales.
Private car sales are generally “as-is,” meaning that the buyer has little recourse. That’s why you should test drive and inspect the vehicle, as well as get a legit vehicle history report.
What if the seller didn't clear the title?
Private sellers aren’t subject to the same regulations as a licensed dealer—but they’re not allowed to deliberately deceive or scam you.
If a vehicle seller tried to sell you a car and didn’t clear the title, they’ll be at fault. This constitutes fraud and potentially wire fraud if the seller made these claims using the internet or telephone communications.
When a vehicle is sold, the seller has a responsibility to to the buyer.
In some cases, the seller may not be authorized to transfer the title. This can happen if there are liens on the vehicle or if the seller did not actually hold the title at the time of sale.
If you’re now unable to register the car or facing the risk of repossession because of the seller’s lack of disclosure, you have some legal protection—but it’s probably going to be time-consuming and expensive regardless.
How secure is PrivateAuto Pay?
PrivateAuto Pay is very secure. It is a direct banking integration that transfers up to $1M instantly between two users via an encrypted gateway. Buyers and sellers don’t need to exchange banking info, so everyone is protected.
Typical private-party used car sales require handling a large amount of cash or dealing with the inconvenience of a cashier’s check.
PrivateAuto Pay is a safe, convenient payment alternative that gives both parties peace of mind.
What to do after you buy a car from a private car seller?
After buying a car from a private seller, you’ll need to take a few extra steps to make sure you can legally drive and register the car.
Key steps after buying a car privately are registering the vehicle, transferring the title, and getting new plates issued in your name (unless you’re in California or Minnesota).
Here are some more details on handling those specific post-purchase tasks:
– When you purchase the car, the seller should provide you with the signed title. Review it to make sure their name is listed and they signed it over to you.
– Before driving off, contact your insurance company to add the car to your policy. You typically need valid insurance in your name to drive legally. Make sure you have proof of insurance.
– Head to the DMV as soon as possible to transfer the title to your name and register the car. Bring the title, bill of sale, ID, and insurance documents. Pay any required car sales taxes and registration fees.
– The DMV will provide you with new registration documents and license plates for the car in your name. These are required to legally drive the car.
– All states except California and Minnesota: remove the old license plates and put on the new ones. Destroy the old registration and replace it with the new one for your records.
– Consider having the car inspected for safety and emissions testing if required in your state. The DMV can provide guidance.
– Notify your insurance company that the car is now registered in your name. Provide them the new VIN, plates, and registration.
Buying a car is a lot like starting a new relationship. You’ll be spending a lot of time together. Start things off right by handling all the details associated with buying a car from a private seller.
When I buy a car from a private seller, can I drive it home?
Most states require the seller to remove their license plates before turning the car over to you, so you’ll be driving without plates. You should check with your local DMV to see what they advise.
In general, here’s what to know about driving your new-to-you vehicle home after the purchase.
1. In most states, you can legally drive a newly purchased vehicle home without temporary tags or registration, provided you have a bill of sale and title transfer paperwork with you. However, be sure to check your state’s DMV regulations before hitting the road.
2. Some states do give temporary registration plates that let you drive for a short period before receiving your license plates in mail. For example, in California, you can get a temporary operating permit to drive for 90 days after a private party purchase. Check with your local DMV on options.
3. If you register the car immediately, some DMV offices can provide same-day temporary permits after processing the title transfer paperwork.
4. If you already have auto insurance, contact your provider to add the new car to your policy before driving it. If not, you’ll need to purchase a new policy. Insurance is required to drive legally.
5. Keep documentation like the bill of sale, title paperwork, and insurance card with you when first driving the car. Also, be prepared to explain the situation if pulled over before receiving plates.
You might find our state-by-state guide to license plates a handy resource. It covers what happens with license plates when a used car is sold, and you can learn more about the requirements of your state.
Is paying with a check better than paying in cash?
Many buyers prefer a cashier’s check for payment rather than a cash payment. A cashier’s check seems more certain than a personal check for transferring funds. However, unless you’re standing in front of the issuing bank during business hours and they verify the funds, the seller—if they’re smart—won’t see it as foolproof. Criminals have forged counterfeit cashier’s checks to con sellers.
To be absolutely sure your cashier’s check is valid, some sellers wait for it to clear their bank before releasing the title. This puts pressure on you to pay a large sum while trusting the seller to sign over the car later. It also means meeting twice, which is inconvenient.
PrivateAuto is safe, instantaneous, and guaranteed. With PrivateAuto Pay, funds instantly appear in the seller’s account, unlike a cashier’s check. The entire transaction can be concluded when you meet for a test drive.
While cashier’s checks are a step up from personal checks, they’re not all that great. For convenience and instant, guaranteed payments, use PrivateAuto Pay.
How do I transfer the car title?
When you meet the seller to close the deal, they will transfer the title to you. You’ll then need to complete the title transfer process at the DMV (or your state’s equivalent agency).
A bill of sale is required in some states, but it is a good idea to sign one regardless, as it gives you written evidence of the transaction and the agreed-upon sale amount in case there’s a dispute later on.
PrivateAuto automates the bill of sale by giving you an official bill of sale for your state. You and the seller sign it inside their PrivateAuto mobile app, and it stays there in your account for reference. If there’s ever a question about the sale’s legitimacy, you have this document to back you up.
How do I register the car?
In most states, you will register the car and transfer the title at the same time.
The specific requirements for registering a vehicle vary from state to state, but here are some general items that you will need to provide:
– The title to the vehicle
– A bill of sale
– Proof of insurance
– Proof of identity and residency
– A payment for the registration fees
Does PrivateAuto offer payment plans?
PrivateAuto is a transactional marketplace that connects you directly with private sellers. You do not pay us for your car; you pay the seller. We do offer in-app financing options via a third party lending partner. You can apply for financing within our app. If approved, the lender pays the seller in full while you make your monthly car payment to the party lender according to the terms of the loan.
How does PrivateAuto vet buyers and sellers?
Both buyers and sellers get verified using the latest facial recognition technology to create a safe experience. Buyers must provide drivers license information, an email address, and a phone number. This personal information is hidden from other buyers and sellers and is only used to verify the user’s identity.
Sellers must enter the VIN for the vehicle and create a profile before listing. A VIN is critical to investigating the ownership of a vehicle and determining whether the title is clean. Buyers and sellers can enjoy peace of mind on PrivateAuto knowing that both parties have been verified.
Do I need an escrow service when buying a car privately?
If you’ve found a good used vehicle and are ready to buy it, a legitimate escrow service can help the transaction go smoothly. Unfortunately, escrow services are expensive and cumbersome.
PrivateAuto gives you escrow-like safeguards in the palm of your hand. Where escrow services cost money and are time-consuming and inconvenient, PrivateAuto Pay has no transaction fees and is instantaneous and convenient.
Read how PrivateAuto Pay enables remote vehicle transactions to learn more about how it can replace escrow.
What is the best place to buy a car from a private seller?
PrivateAuto is the world’s only transactional automotive marketplace that provides the infrastructure and tools to transact securely. Other so-called “marketplaces” are actually just “meeting places”; they connect a buyer and a seller but don’t support the transaction.
You can shop used cars for sale on PrivateAuto, but what if you don’t find the car you want? Maybe your perfect vehicle is listed on Craigslist, Facebook Marketplace, or AutoTrader.
No problem. Find a car on another platform, then hop over to PrivateAuto to conclude the deal securely and quickly using DealNow. You’ll enjoy PrivateAuto’s seamless transaction support. Built-in tools like verified identities, legally binding documents, and lightning fast payments up to $1 million.
Helpful Resources
Popular Vehicles For Sale By Owner
Further Reading
Dana Marchlowitz
Contributing Author