An inherent trust problem plagues private-party car sales. Think of it as a catch-22: you don’t want to let the car go until you’ve been paid, and the buyer doesn’t want to pay you until they receive the car. Escrow companies solve this dilemma by creating trust between private buyers and sellers.
Escrow is secure, but it’s also time-consuming, expensive, and inconvenient. We’ll introduce an instant, affordable, secure, and intuitive alternative that solves the trust problem and gets you paid.
An escrow company holds the buyer’s funds until the buyer receives the car and then releases the funds to you. Here’s how the escrow process plays out:
Escrow facilitates secure transactions and keeps both parties honest.
Escrow services are safe as long as you choose a legitimate one. While rare, scammers target sellers with fake escrow companies. Here’s the most common escrow scam:
The entire point of escrow is that a trusted third party receives, holds, and releases the buyer’s funds. Never use a buyer-suggested escrow company without due diligence to verify legitimacy. If you have doubts, tell the buyer you want to use a different escrow company.
To verify an escrow company’s legitimacy, focus on four areas: licensing, associations, address, and reviews.
Fake escrow services are uncommon, and diligent private sellers can easily avoid them. But fraud risk isn’t the only downside of escrow.
Escrow fills an important need in high-dollar, high-stakes private sales, but it’s a solution with its own set of problems:
If you want the safety of a trusted escrow service without the downsides, you’re ready for DealNow.
DealNow gives you immediate escrow-like safeguards in the palm of your hand. You initiate a private dealroom with a verified buyer. You and the buyer go through a step-by-step transactional workflow that protects each of you throughout the process.
After the buyer has approved the vehicle, both parties are prompted to electronically sign an official bill of sale. This legally enforceable contract makes it easy for the buyer to confidently pay, knowing they will get the car.
When the buyer submits payment, the transfer of funds is immediate, even if it’s the middle of the night on a holiday. This immediacy allows you to sign over the title and turn the car over to the buyer.
The entire transaction is completed in a few minutes, and you and the buyer are protected at each step. You overcome the trust problem, and you each fulfill your side of the bargain.
Here is how DealNow outperforms traditional escrow while protecting you:
With DealNow, you’re not just getting escrow-like security—you’re getting a complete, high-speed, digital payment platform for car transactions.
| DealNow | Traditional Escrow | |
|---|---|---|
|
Cost |
Flat fee |
Typically 1% to 3% of the sale price |
|
Payment speed |
Instant |
Several days, sometimes longer |
|
Availability |
24/7/365 |
Business hours only |
|
Buyer verification |
Built-in identity verification |
May be limited or require additional steps |
|
Paperwork |
Digital, automated |
Often requires physical paperwork |
|
Mobile app |
Yes |
Varies by service |
|
Geographic reach |
Nationwide (US) |
May be limited to certain areas |
|
Maximum sale value |
Unlimited |
May have upper limits |
Here’s how easy it is to sell a car with DealNow:
Experience a smoother, faster, and more secure way to sell your car with DealNow. Ready to give it a shot?
The safest payment method when selling a car is one that provides security, speed, and verification for both parties. While traditional methods such as physical cash, personal or cashier’s checks, or escrow services are popular, DealNow offers a modern, more efficient solution.
DealNow combines the security of escrow with instant digital payments. It verifies buyer and seller identities, provides a secure platform for the transaction, and enables immediate payment upon deal completion. This eliminates risks associated with cash (theft, counterfeit) and checks (bouncing) while avoiding the delays of traditional escrow.
The payment of escrow fees depends on the agreement between the buyer and the seller. In most cases, the buyer pays the escrow fees, but sometimes the cost is split between both parties. In other cases, the seller might agree to cover the fees to make the deal more attractive to potential buyers.
With DealNow, our flat fee structure makes it easier for parties to agree on fee payments without significantly impacting the overall transaction cost. This simplifies negotiations and helps private buyers and sellers focus on the core aspects of the deal.
Escrow.com charges:
On a $20,000 car, you could be paying over $500 in fees.
In contrast, DealNow uses a simple flat fee structure, potentially saving you hundreds of dollars on larger transactions.
Escrow services are not free. Traditional escrow services typically charge a percentage of the transaction value, which can be significant for high-value cars.
DealNow provides escrow-like security that is more convenient and comes at a lower cost.
Many people don’t use escrow for private-party vehicle transactions. Some people prefer traditional methods such as cash, personal checks, cashier’s checks, credit card payments, or wire transfers. Others may avoid escrow due to its fees and complexity.
The alternatives can be risky. Cash transactions are vulnerable to theft or counterfeiting, skilled forgers make counterfeit checks, and bank transfers require the seller to disclose sensitive bank account information to a stranger.
DealNow combines the security of escrow with the speed of digital transactions, all without fees. It’s designed to make secure, private-party vehicle sales accessible to everyone.
An escrow agreement is a legally binding contract. Once all parties sign it, they’re obligated to follow the terms outlined in the agreement. This is part of what makes escrow businesses a secure option for private-party car sales.
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
