Can I Pay for a Used Car With a Check?

Paying for a car by check has some advantages over paying with cash. Such as not lugging $45K in bills to a Walmart parking lot and feeling a bit too much like a drug dealer.

Checks have their problems as well. They’re super inconvenient, for one. Also slow. Fortunately, there’s a better way.

PrivateAuto Pay allows you to pay instantly, any time of day, any day of the year. It works via a fee-free fund transfer. Sort of like Venmo—for transactions up to $1M.

Almost nobody will accept a personal check as payment for their car. Unless they hold the car and wait for your check to clear, in which case you’ll be forced to trust them—and wait to take possession of the car.

Cashier’s checks are thought to be a safer guarantee for the seller, but even they aren’t bulletproof. Cashier’s check scams have gained notoriety, leaving a lot of car sellers to distrust this payment method.

Unless you and the seller go to your bank—during hours when it’s open, of course—and get the bank to verify the check’s legitimacy, a cashier’s check won’t do the trick.

Cashier's checks have been a popular way to pay for a private-sale vehicle, and they do have a few advantages over other payment types.

1. Guaranteed funds: cashier's checks provide guaranteed money once verified, giving sellers confidence.
2. Security features: cashier’s checks contain anti-fraud measures like watermarks and security inks. These help prevent counterfeits, even if skilled scammers still find ways to fake them.
3. Financial record: checks create a paper trail documenting the transaction, unlike cash. This offers protection if issues arise.
4. Familiarity and convenience: both buyers and sellers are accustomed to cashier's checks as a known, convenient payment option.

While cashier's checks are more secure than personal checks, they’re stuck in the stone age compared to PrivateAuto Pay:

1. Delayed payments: checks take time to fully clear banks, so sellers must wait for payment. This creates friction and delays in getting the deal done quickly.
2. Susceptibility to fraud: the potential of cashier's check scams has sellers on edge.
3. Inconvenience: meeting up at a bank is a hassle.

PrivateAuto Pay combines the certainty of a bank-verified cashier's check with the immediacy and convenience of Venmo. It has no transaction fees and works 24/7/365 for payments up to $1M.

What if there was a seamless way to send digital payments to total strangers, instantly and fee-free?

Say goodbye to paper cash, checks, ACH transfers, and every other cumbersome payment method. It’s time for a better way to pay for private-sale cars.

PrivateAuto Pay is our integrated payment solution. It’s a core part of the PrivateAuto transactional marketplace, and it’s like nothing you’ve seen before.

With PrivateAuto Pay, you can ditch checks and pay instantly, safely, and conveniently right from your smartphone.

No more waiting for your check to clear. No more limited banking hours or coordinating complex wire transfers. Just seamless, instant digital cash payments between verified accounts, 24/7.

Pay safely in seconds without ever sharing personal information. Enjoy escrow-like safeguards without the third party fees.

Whether transacting in-person or buying a car in another state, PrivateAuto Pay is the smartest way to pay. You can act decisively on a great used car while keeping your money secure.

If paying by check in a private party car sale, here are the key steps:

1. Find a car to buy.
2. Get a cashier's check from your bank for the amount of the car’s purchase price.
3. Meet the seller at your bank during banking hours.
4. Have the bank confirm to the seller that the check is legitimate and that the funds will clear.
5. Verify all documentation, ensuring that the seller has properly filled out and signed the car title.
6. Give the cashier’s check to the seller and take possession of the car.

Easy peasy, right? Not so much.

PrivateAuto Pay makes purchases simple and secure.

1. Browse used cars for sale by owner on PrivateAuto (or even on another site). Find the one you want to buy.
2. Fund your PrivateAuto Pay account. You can initiate a funds transfer from your bank anytime. No limits on transfer amounts. If you need to get a loan for your car, you can do so right in the PrivateAuto app. Once approved, the lender will fund your PrivateAuto Pay account.
3. Meet the seller via our in-app scheduler—without ever giving out personal info such as email or phone number.
4. Review your in-app bill of sale, financing terms, and other documents. Digitally sign them in the app. The seller signs them as well, and you get a notification when they have done so. Once you and the seller have electronically signed the bill of sale, they are legally obligated to transfer the title to you after receiving your payment.
5. Once you receive the notification that the seller has signed the bill of sale, approve payment. PrivateAuto Pay will instantly transfer the funds to the seller’s PrivateAuto Pay account.
6. The seller transfers the title to you and gives you the keys.
7. Drive away in your new-to-you car with a binding record of the entire transaction stored in your PrivateAuto account.
8. Complete the title transfer at the DMV, and get new license plates and registration.

Found a car you like somewhere else? We got you! Use DealNow to fast-track a transaction with our infrastructure, even if you met the seller on another platform like KSL Cars.

DealNow uses instant and secure transactional tech and offers all the same conveniences, along with a fast-tracked deal flow. It not only bypasses the car shopping, messaging, and negotiation steps, saves money by eliminating the need for an escrow service but you can also pay for the car on the weekend.

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.

There are a sea of places where you can buy a car, but they don't give you the transactional features to get the deal done safely, securely, and inexpensively like PrivateAuto does.

Here are some popular platforms for buying used cars online:


These are all “meeting places” rather than true marketplaces; they connect you to the vehicle owner but don’t give you the transactional infrastructure to get the deal done.

PrivateAuto is the only transactional marketplace that offers a full suite of tools that let you get the deal done quickly, securely, and easily

Here's how we stand out from our competitors:


Even though PrivateAuto is by far the best car-buying app, we don’t hate these “meeting places” at all. In fact, if you find a car on one of them and want to buy it, you can still use our transactional infrastructure to get the deal done. Simply invite the seller to our DealNow fast-track feature to enjoy the security, privacy, and immediacy of PrivateAuto Pay and our other features.

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!

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