PrivateAuto Pay enables instant and fee-free fund transfers, anytime, 24/7/365.
Avoid the hassles of traditional bank transfers. Stop giving out your banking information. Enjoy ultimate convenience and protection.
Is it better to buy from a private seller?
Buying from a Private Seller vs a Dealer
Many people believe that buying a car from a dealer will save them money. Actually, going to a dealer is more expensive.
- 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.
- Used car dealerships usually have higher prices. 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 shop used cars for sale by owner on PrivateAuto, you avoid the doc fee and 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. PrivateAuto gives you dealer-like convenience while also allowing you to transact with regular people like yourself.
Cutting out the middleman unlocks major savings. Our pioneering protections, like verified IDs and secure messaging, enable private sales with peace of mind. Buy directly from motivated sellers on your terms.
What are the advantages of bank transfers?
Can I Pay by Bank Transfer for a Used Car?
Bank wires are tried-and-true channels, but they’re super old-school. Paying for a used car via bank wire transfer is not exactly fast and convenient.
- The seller will need to give you their banking info. Even though you’re trustworthy, they don’t know you, and they may be uncomfortable revealing this information (wouldn’t you be?).
- The funds transfer may take several hours (or in some cases, several days) to process, preventing you from concluding the deal in one get-together.
- Weekends and holidays slow the transfer process even more.
- Your bank (or the seller’s bank) may have transfer limits, forcing you to do a series of transfers.
- Fees: most banks charge fees for outgoing and incoming transfers.
- Coordination challenges: both parties must carefully synchronize sending and receiving transfers, introducing opportunities for delays or confusion.
- Bank wires lack purchase protections, meaning you have no recourse if the seller disappears after receiving the money.
PrivateAuto Pay enables instant, secure transfers. Conveniently and safely pay a private seller electronically in seconds, anytime 24/7.
What is the safest payment method?
What is the Safest Payment Method when Buying a Car?
What if there was a smooth, digital way to pay strangers instantly without fees? A method as sure as a suitcase full of bills, but without the hassle and risk of physical cash?
Say goodbye to physical cash, checks, ACH transfers, and every other cumbersome payment method. It’s time for a better way to pay for private-sale cars.
What is PrivateAuto Pay?
What is PrivateAuto Pay?
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.
- Your PrivateAuto Pay account is actually a bank account that you own, accessed via your PrivateAuto profile.
- Easily move money between your PrivateAuto Pay account and your external bank account via a balance transfer.
- Send up to $1 million with no transaction fees.
- Strong encryption protects your data from hackers.
- You can even buy a car remotely if you find your perfect vehicle in another state (and then arrange for car shipping right within our app).
- Instantaneous payments enable real-time deals—no waiting or coordination. Close the deal when you meet for the test drive.
- Works 24 hours a day, 365 days a year. No coordinating around banker’s hours.
- No exchange of contact or banking info—your sensitive information stays safe, protecting you from scammers.
- Escrow-like safeguards eliminate the need for an escrow service, allowing you to save money.
- Use DealNow for your transaction even if you met the seller on another site, such as Facebook Marketplace or Craigslist. Just invite them to the DealNow fast-track solution and enjoy the power of instant transactional features.
How Does PrivateAuto Pay Solve Payment Issues?
With PrivateAuto Pay, you can ditch cumbersome bank wires and pay instantly, safely, and conveniently right from your smartphone.
No more coordinating multiple transfers due to strict limits. No more aligning with banking hours or long processing delays. Just seamless, instant digital payments between verified accounts, 24/7.
Transfer large sums securely in seconds without exposing your personal account information. Enjoy escrow-like protections without any third party fees.
Whether transacting in-person or buying a car in another state, PrivateAuto Pay is the smartest way to pay private sellers. You can act decisively on a great used car while keeping your money secure.
How Do I Buy a Car With PrivateAuto Pay?
PrivateAuto Pay makes purchases simple and secure.
1. Fund your PrivateAuto Pay account. You can initiate an instant funds transfer from your bank anytime. No limits on transfer amounts. If you need to [get a loan for your car]https://privateauto.com/financing/cars), you can do so right in the PrivateAuto app. Once approved, the lender will fund your PrivateAuto Pay account.
2. Browse used cars for sale by owner on PrivateAuto (or even on another site). Find the one you want to buy.
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 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 helps you avoid fraud, sign documents, and instantly transact online.
What is the best place to buy a car?
What Is The Best Place To Buy A Car From A Private Seller?
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:
- Bring a Trailer
- eBay Motors
- Local classifieds sites
- Craigslist
- Facebook Marketplace
- Autotrader
- Cars.com
- AutoTempest
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:
- Verified users for trusted transactions.
- Private in-app messaging with sellers.
- Schedule vehicle transport within the PrivateAuto app
- Eliminate the need for an escrow service.
- Send instant offers on any vehicle.
- Secure transfers of up to $1 million, instantaneous and fee-free
- Shop for used car warranties and get warranty coverage
- In-app test drive scheduling and document signing.
- Complete purchases remotely without meeting in person (perfect for out-of-state transactions).
- Apply for competitive financing from lending partners.
- DealNow feature to fast-track a deal using PrivateAuto infrastructure.
- Encrypted info protects your data from hackers
- Shop insurance quotes and get coverage right within the PrivateAuto app
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.
What are the tax implications of buying a car in cash?
What are the Tax Implications of Buying a Car in Cash?
Unless you live in a state without sales tax, you’ll need to pay sales tax on your vehicle purchase. Other than that, there aren’t a lot of tax implications when buying a car—whether you pay cash or get a car loan.
Here’s what you need to know about tax implications for vehicle purchases in a general sense. Always do your research on your state’s requirements, as they may vary.
- No income tax. A car purchase is not taxable income, so no income taxes are owed.
- No gift taxes. Even gifting the car to someone later does not generally incur gift taxes unless it’s a very expensive car. Individual state rules may differ
- Sales tax. You will owe applicable state sales tax on the purchase price. The rate varies by state but averages 4% to 7% of the car’s value.
- Private sellers may not collect tax. You will need to formally self-report and pay sales tax to your local DMV when you register the car.
- Sales tax exemptions: research what exemptions are available in your state. Some states waive tax if a transaction is between immediate family members, or if the registrant is a religious organization, government body, or some other exempt status.
Find your Dream Vehicle on PrivateAuto
Here’s the PrivateAuto car buying process, and how we make it easier.
1. Browse used cars for sale on PrivateAuto.
2. Look at the top of the page for the “Filter by Location” button. There, you will enter your desired location.
3. Set a search radius, such as 25, 50, or 100 miles.
4. You can make your search even more specific by using a wide range of filters, such as the year, the price range, the trim, etc.
5. When you click “Search,” a list of all the cars that match your search criteria will appear.
Want to sell your car? Create a listing on PrivateAuto and connect with interested buyers today!
FAQ on Paying For a Car by Bank Transfer
How long does a bank transfer take to clear?
Money transferred between banks can take anywhere from one to five business days to clear, depending on the method used (check, peer-to-peer app, or wire transfer).
PrivateAuto Pay makes payments easier. Our secure digital system allows you to transfer any amount instantly, 24 hours a day, seven days a week.
What if I can't afford to pay the full amount in cash?
Financing a used car is perfectly normal; most people can’t afford to pay cash upfront. With PrivateAuto’s integrated financing, you can buy your next car with ease and confidence when you get a car loan through our integrated lending partner.
The entire process happens seamlessly within the PrivateAuto app. After a credit score check, you can get approved in minutes for competitive used auto loan rates. The lender then deposits the funds into your PrivateAuto Pay account.
You’ll send payment to the seller from your funded PrivateAuto Pay account. The seller receives the funds instantly, the same as if you were sending your own money. No coordination with the lender required.
There’s no waiting on checks or loan paperwork. You’ll make payments to the lender afterwards, just like a typical car loan.
PrivateAuto understands that financing is often needed to buy a used car. We make the entire experience—from auto loan approval to driving off—hassle-free, so you can focus on finding the perfect car at the right price.
No more going to an external bank for your personal loan and jumping through a ton of hoops. If you’re in the market, feel free to get started with car financing here!
Does PrivateAuto offer plans for loan payments?
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 monthly payments to the lender according to the terms of the loan.
Is paying with a check better than paying in cash?
Many buyers prefer a cashier’s check for payment rather than paying for a car with cash. 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.
Does PrivateAuto provide the necessary paperwork for a successful transfer of ownership?
PrivateAuto has all the paperwork you need to buy a car in any state. Each state requires different paperwork to legally transfer titles and buy vehicles from a private party. Many states require a bill of sale. Some states have their own specific forms that are required to buy or sell a vehicle in the state.
PrivateAuto manages all these forms and makes them available for both buyers and sellers to electronically sign. The entire process is only accessible by the buyer and seller, which reduces the risk of identity theft. It can be difficult to keep up with state-specific laws, particularly if you’ve moved states recently, so use PrivateAuto to ensure a smooth and legal transaction.
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 charge fees, PrivateAuto Pay does not charge for transferring funds.
Is PrivateAuto Pay secure?
PrivateAuto Pay is very secure. It is a direct banking integration that ensures payments are safely transferred without the risks associated with cash or cashier’s checks. Payment information is hidden from the seller, so a buyer doesn’t need to be concerned with bank information theft.
Typical private-party used car sales require handling a large amount of cash or processing a cashier’s check.
Cash can be stolen, and cashier’s checks can be falsified. Cashier’s checks may appear legitimate even after being deposited, only to be exposed weeks later after you’ve already signed over your vehicle.
PrivateAuto Pay is a safer alternative that gives both parties peace of mind.
How do I avoid scams when buying a used car from a private seller?
Unfortunately, when purchasing a car with cash, fraud is a concern. Criminals use a variety of methods, such as faked vehicle history, odometer tampering, or title scams.
PrivateAuto offers vehicle history reports with all premium listings, and also has identity verification and the security of PrivateAuto Pay. These measures cut down significantly on fraudsters, but it always pays to be vigilant.
Beware of sellers pressuring you to pay with cash immediately. Don’t hand over your cash without verifying the details and test driving. If a seller gives you a high-pressure “act now or lose out” ultimatum, it’s best to walk away. There will be other listings available without undue seller pressure.
The key is taking your time—carefully inspecting the car, verifying the VIN, test driving carefully, and not paying until you’re confident about going through with the transaction.
PrivateAuto helps by letting you schedule test drives securely and make payments only when terms are met. With a little patience, you can find the right car without being rushed into a fraudulent deal.
What do you do after you buy a car from a private seller?
Buying vehicles from private sellers rather than car dealerships requires 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 license plates issued in your name (unless you’re in California or Minnesota).
While specifics can vary from state to state, here are the basics of what you need to do after buying a car from a private seller.
– 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 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:the seller will remove the old license plates, and you will get new plates from the DMV and install them. 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 with the new VIN, plates, and registration.
Buying a car is sort of like starting a 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.
Helpful Resources
Popular Vehicles For Sale By Owner
Brad Parker
Contributing Author
Brad Parker is the CEO and co-founder of PrivateAuto, where his dynamic entrepreneurial spirit and visionary leadership are driving the transformation of the automotive industry….