10 Steps to Buy a Used Car From a Private Seller

Buy a used car privately to save thousands compared to dealer pricing. Follow these 10 steps to land your dream used car at thousands below dealer prices:

Let’s get into it!

When buying a used car from a private seller, the very first step is deciding your maximum budget. This includes factoring in all expenses.

1. Research current market prices for the makes/models you want. Resources like Kelley Blue Book offer fair value data.
2. If paying cash, tally up your savings and decide the total out-of-pocket max.
3. If you’re planning to finance the car, calculate what your monthly payment will be. Our auto loan calculator can help with this.
4. Factor in ancillary costs like insurance, fuel, and maintenance. Add to your total budget.
5. Include estimated sales tax on the vehicle purchase price in your state.
6. Consider must-have features vs. nice-to-have add-ons. Balance needs and wants within your budget.

Need financing? We’re here to make it easier. No more coordinating between a bank and the seller. Everything happens seamlessly in the PrivateAuto ecosystem.

Here’s how it works:

1. Apply for competitive financing through the PrivateAuto app and get approved by our FDIC-insured lending partner.
2. The lender funds your PrivateAuto Pay account.
3. You buy the car and pay the seller instantly via PrivateAuto Pay.
4. You make car payments to the lender.

It’s so smooth, you’ll wonder why this wasn’t available all along.

If you’re in the market for a vehicle, you probably have some idea of what type, make, and model you want. If not, this is a good time to do some research and consideration.

Now that you know what type of vehicle you’re looking for, it’s time to find it.

1. Browse used cars for sale on PrivateAuto or other vehicle listing sites.
2. Set filters for the vehicle type you want and the price point that matches your budget.
3. Make offers on vehicles that match your criteria (next step).

If you're open to buying a car from out of state, PrivateAuto enables you to broaden your search and potentially find a better deal or a rare model—like a Dodge Demon—that may not be available in your immediate area.

Once you've found your dream car, you can seamlessly contact the seller and make an offer right in the PrivateAuto app.

When buying a used car from a private seller, negotiating a fair purchase price is key:

PrivateAuto empowers you to contact sellers and negotiate deals seamlessly within our secure app:


PrivateAuto takes the stress out of contacting sellers and negotiating your best deal.

While a vehicle history report is not mandatory, it can certainly give you peace of mind. It covers ownership history and maintenance records and demonstrates how well the seller cared for their car.

PrivateAuto provides a vehicle history report for all premium listings.

Here are some reasons a vehicle history report gives you peace of mind. You know how well the car has been cared for, which gives you visibility into any accidents or insurance claims. It should also include service records, major repairs, and other work.

Unless you’re buying a car remotely, you’re going to want to test drive it. PrivateAuto lets you arrange the test drive without giving out your contact info.

1. Our handy in-app scheduler allows you and the buyer to conveniently arrange the ideal time and public meetup spot. No hassle or compromise on your schedule.
2. You control the entire process securely through the app. We enable you to connect with verified sellers only, so you can feel confident meeting them for a test drive.
3. Our platform empowers you to engage sellers on your terms for a smooth sale. We handle scheduling and verification seamlessly while protecting your privacy.

It’s a good idea to get a mechanical inspection on any used car you buy.

You can inspect it yourself at the time of the test drive if you have the skills. Or, you can have it inspected by a reliable mechanic.

Learn more about pre-purchase inspection, or order a professional inspection here.

Finalizing the sale of your car requires some important paperwork for a smooth ownership transfer. Don't let the documents slow you down—with PrivateAuto, the process is simple, secure, and 100% digital.

Many states require a bill of sale, but you should do one regardless. A bill of sale protects you by memorializing the terms of the sale, the vehicle VIN, selling price, mileage and the names and signatures of both parties.

PrivateAuto makes it easy with an official bill of sale right in our app, tailored to your state. You and the seller review the details, then digitally sign the bill of sale after inspecting the vehicle. No printing or scanning, simply sign electronically in the app.

With PrivateAuto's seamless bill of sale process, you can sell your car with confidence, security, and legal protection.

For vehicles under 10 years old, federal law mandates that the seller must provide you a written odometer disclosure statement. This statement must be on a form that is approved by your state’s Department of Motor Vehicles (DMV) or equivalent motor vehicle registry agency.

The seller should never round up or estimate when filling out this document. Both you and the seller will need to sign this at the time of sale.

The seller should never round up or estimate when filling out this document. Both you and the seller will need to sign this at the time of sale.

What if there was a smooth, digital way to send money instantly with no transfer fees? A digital transfer that is as instant as the blink of an eye?

Say goodbye to waiting for paper checks to clear and every other awkward payment method. It's time for an easy, seamless way for you to pay for a car.

PrivateAuto Pay is PrivateAuto’s built-in banking integration that enables instant, secure, and fee-free funds transfers up to $1M. It’s a dream come true for both car buyers and sellers.


OK, so PrivateAuto Pay is great and all, but it’s a service for users of PrivateAuto’s transactional marketplace. What if you're buying a car on another website, such as CarGurus?

Enter our DealNow fast-track solution, created to give you access to PrivateAuto’s extraordinary transaction capabilities. Even if—especially if—you didn't find your car on PrivateAuto.

PrivateAuto allows you to search for used cars, communicate with sellers, complete purchases, and handle financing all in one place. But we know you may find a great car listed for sale elsewhere, like Facebook Marketplace or Craigslist.

That’s why we created DealNow. You get to skip the listing process altogether and go straight to closing the transaction with the power of PrivateAuto Pay. Here’s how it works:

1. Invite the seller to DealNow via a custom link.
2. Enjoy identity verification, in-app messaging, and our test drive scheduling feature (none of which require you to exchange contact info).
3. Meet the seller, and drive the car.
4. You and the seller go together through a step-by-step transaction process in which you each confirm relevant details right in the PrivateAuto mobile app. From mileage to the Vehicle Identification Number (VIN) to the condition of the vehicle, we help you both prevent any errors.
5. You and the seller each electronically sign an official bill of sale. This is stored in your PrivateAuto account as a legal record you can refer to down the road.
6. You will then be prompted to initiate payment.
7. The seller will get a notification of funds received and confirm receipt of payment.
8. The seller signs over the car title and hands over the keys.

DealNow is so smooth, so safe, and so fast that you’ll never want to buy a car without it. No matter where you find your seller—from eBay Motors to Autotrader to the friend of a friend—DealNow will help you get the deal done.

Finalizing your used car purchase requires signing some key documents. Being prepared with the right paperwork ensures a smooth transaction.

The seller must sign the title over to you to legally transfer ownership. Double check that the VIN, make, model, year, and mileage on the title match the actual vehicle. This prevents title fraud.

Bring documentation like the signed title, bill of sale, current auto insurance, and your ID to the DMV. There, you will need to pay any state registration fees and sales taxes.

The DMV will enter your ownership into their records and provide registration documentation in your name.

After registering, most states issue new plates to you with your registration sticker or tag. This associates the plates with you for renewals.

Exceptions are California and Minnesota—plates stay with the car in those two states. Your local DMV will provide you with temporary plates to drive before your permanent plates arrive by mail.

You’ll love how smooth and secure the car buying process is when you use the PrivateAuto mobile app.

1. Browse used cars for sale by owner. Filter by location, vehicle type, or other criteria.
2. Make offers on vehicles you like (PrivateAuto lets you offer less than the asking price).
3. Message the seller with any questions without giving your contact info.
4. Schedule the test drive while keeping your personal details private.
5. Electronically sign the bill of sale along with the seller.
6. Instantly send payment and take ownership of the car when the seller signs the title and gives you the keys.

Looking to sell your car? Create a listing on PrivateAuto and connect with interested buyers today!