6 Reasons Why Buying From a Private Seller Is Better

PrivateAuto makes the private-party experience easy, convenient, safe, and fast. Get all the benefits of a private-party deal, without the downsides.

Let’s get into the details of why the private-party purchase is your best bet.

One: Avoid Fees

With a private purchase, you get more car for your money. You avoid dealer fees, such as documentation fees that can range from $50 to over $1,000.

Two: Better Value

A private sale provides better value than a dealership purchase.

Dealerships buy low and sell high to generate a profit. This means that the prices at dealerships are often inflated to account for their overhead costs and desired margins. Private sellers are more motivated to sell their vehicles quickly and at a fair price, allowing you to score a better deal.

Three: Access to a Wider Pool of Sellers

Private-party purchases give you access to a much larger pool of potential vehicles then limiting your options to dealership inventory. This means you have a greater chance of finding the exact make, model, and features you’re looking for at a price that fits your budget.

By tapping into the private seller market, you can discover hidden gems that aren’t available at dealerships, such as:

Rare classic cars
Electric vehicles made for foreign market
Specific color or trim packages
Unique feature combinations

Four: Direct Negotiation

In private sales, you have the freedom to negotiate directly with the owner and drive the deal on your terms. This level of control is one of the biggest advantages of private-party purchases.

With PrivateAuto, you can offer less than the purchase price with our innovative “make an offer” feature. With a couple of clicks in the PrivateAuto app, you’ve sent an offer. No awkward back-and-forth conversations trying to talk the seller down.

The seller can accept your offer, reject it, or counteroffer in seconds.

It’s price negotiation, built into our transactional workflow.

Five: Potential Sales Tax Savings

Three states—Hawaii, Arizona, and Nevada—charge sales tax on dealership vehicle sales but not on private party sales. This is a huge incentive to buy privately in these states, on top of all the other advantages of private-party transactions.

Six: Less Pressure and More Transparency

Private sellers are just regular folks looking to sell their cars, not professional salespeople with quotas to meet. This means you can inspect the vehicle, ask questions, and negotiate on your terms without feeling rushed or pressured.

When you buy a car from a private seller, you have the unique opportunity to gain a comprehensive understanding of the vehicle’s background. Many private-party cars are being sold by first owners, meaning that the seller knows the vehicle’s history intimately. They can provide insights that a dealership can’t match. Sellers can tell you where the car was parked, was driven for short or long distances, and how it was driven.

PrivateAuto makes it easy to communicate with sellers without giving out your personal info. Our messaging feature is built into the PrivateAuto tech stack and keeps your information private.

How Do I Avoid Fraud When Buying a Car Privately?

Criminals use a plethora of methods to trick car buyers, such as fake vehicle histories, odometer tampering, or title scams.

PrivateAuto includes 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.

Don’t let a seller rush you into accepting a high price or paying 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. If the car is priced fairly, there will be other listings available without undue seller pressure.

The key is to take your time. Inspect the car, verify the VIN, test drive, and don’t pay until you’re confident about going through with the transaction.

PrivateAuto fights fraud with our secure transactional workflow. You never expose your sensitive info to strangers, and you pay after you’ve inspected the car and the seller has e-signed the bill of sale in our app.

Where is the Best Place to Buy a Car Privately?

There are tons of platforms for buying used cars online. Most serve as “meetingplaces” but lack transactional capabilities. They assist you in finding a car to buy, but that’s about it. You and the seller are left to muddle through how to meet up, how to handle paperwork, and how to handle payment.

PrivateAuto is the only transactional marketplace that takes you through every aspect of the deal. Here are some of the benefits:

Instant, fee-free, and secure payments via PrivateAuto Pay. Send any amount in the blink of an eye.
In-app messaging keeps your contact info private.
Test drive scheduling eliminates back-and-forth with the seller
In-app electronic signing of the bill of sale protects you and gives you a legal record

Found your dream car on Facebook Marketplace, Craigslist, or eBay Motors? Our DealNow feature lets you start a deal on another site and finish it with PrivateAuto. Invite the seller to DealNow via a custom link you’ll create, and then enjoy our fast-track deal flow and proprietary infrastructure.

Start your transaction anywhere, and finish it with PrivateAuto.

Private Sale FAQ

When I buy a car from a private seller can I drive it home in Florida?

In Florida, you need to get temporary tags before driving the vehicle home. To find out more about driving home after your purchase, visit the Florida Department of Highway Safety and Motor Vehicles (DHSMV) official website.

How to buy a used car from a private seller in Texas?

In Texas, you should go through the following steps when buying a used car from a private party.

1. Find a seller who is selling a car you like
2. Set a price you both can agree on
3. Schedule a test drive
4. Handle the documentation
5. Pay the seller
6. Have the seller transfer the ownership of the car title
7. Register the car in your name and sales taxes and pay fees
8. Get new license plates

Do I need to check the vehicle identification number when buying a used car?

When buying a used car, always check the VIN that the previous owner has written on the title. Carefully compare it to the actual VIN on the car. You want to avoid the problem of having the wrong vehicle information number on the title when you go to register your newly bought car with the State of Texas.

The PrivateAuto app has a vehicle identification number field where buyers and sellers individually confirm the vehicle identification number. This helps eliminate errors (or the rare case of outright fraud).

How to buy a car with PrivateAuto?

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.

What paperwork is needed to buy a car from a private seller?

Before you buy the car have all the mandatory paperwork for your state. If you are unsure of which documents you need, contact your local DMV office for more info.

Here are some common documents that are typically needed:

– Bill of sale
– Vehicle title
– Registration
– Release of liability
– Odometer statement
– Proof of auto insurance
– State ID
– Inspection forms

What is the safest way to transfer money when buying a vehicle privately?

The safest way to pay for a car is PrivateAuto Pay. Cash and cashier’s checks are inconvenient. Our payment integration is the only way to send instantaneous transfers over $5,000 with no exchange of personal or financial information.

Since the payment is available to the seller as soon as you send it, you’ll be able to take possession of the vehicle when you meet for the test drive, minimizing the risk of fraud on the seller’s end.

Do I need an escrow service when buying a car privately?

If you’ve found a pre-owned vehicle and are ready to buy it, a legitimate escrow service can protect both parties. Unfortunately, escrow services are expensive and cumbersome. You also need to watch out for escrow scams.

PrivateAuto Pay gives you escrow-like safeguards in the palm of your hand. Where escrow services charge exorbitant fees, PrivateAuto Pay is free to users of PrivateAuto or DealNow.

Read how PrivateAuto Pay enables remote vehicle transactions to learn more about its escrow-like safeguards.

Are wire transfers safe when buying a car?

For large transactions, many buyers opt to pay for a car by bank transfer. The advantage is that funds are guaranteed by the banks involved, making it a fairly safe payment option.

Wire transfers have downsides. The seller must provide their banking details to the buyer, opening themselves to potential financial harm. Wire transfers are also not instant—they require coordination between the buyer, seller, and two banks. If done outside banking hours, transfers can take days to complete.

PrivateAuto Pay enables instant transfers between buyer and seller accounts, anytime, 24/7. No one needs to exchange banking information or rely on banks to be open.

So while bank wire transfers provide some security, they lack convenience and immediacy. For fast and seamless cash payments, PrivateAuto Pay is the new way to transfer funds instantly between bank accounts.