How To Buy a Car on Classified Ads

Most car shopping has moved online, but some private sellers still prefer print classifieds. These listing types often advertise competitively priced personal vehicles and specialty cars. But buying through classifieds means dealing with unverified sellers and unvetted cars, and you’ll be on your own once you contact the seller. 

We’ll walk you through the private-party car purchasing process using classified ads and introduce you to a new tool that makes these transactions as safe as buying from a dealership.

Step 1: Understand Classified Ads and Find a Car

Unlike online marketplaces where listings are often free and abundant, print classifieds charge an insertion fee and charge by character. This barrier to entry attracts more serious sellers and weeds out scammers.

Where To Look

You’ll find printed car classifieds in:

  • Local newspapers and penny-savers
  • Regional Auto Trader magazines
  • Trade and enthusiast publications
  • Specialty automotive circulars

How To Read Classifieds

Because sellers pay for print space, they use abbreviated language. Common terms include OBO (or best offer), ODO (odometer reading), and AT/MT (automatic/manual transmission). While this makes listings compact, it also means you’ll need to read between the lines.

Watch for phrases that often signal problems:

  • “Needs TLC” usually means significant repairs
  • “Project car” often means it’s not running
  • “Must sell” could indicate desperation or mechanical problems

Before contacting a seller, research the vehicle’s value using Kelly Blue Book. Whether you’re looking at a Honda CR-V or a Ford F-350, knowing the average price will help you spot worthwhile deals.

Classifieds: Pros and Cons

There are generally two types of sellers that still use print classifieds:

  1. Seasoned car enthusiasts who want to advertise unique or specialty vehicles to a targeted audience of buyers.
  2. Older generations who grew up using print classifieds and aren’t comfortable using computers.

Whatever their motive, you stand to benefit from:

  • Less competition from other potential buyers.
  • More motivated sellers due to paid listings.
  • Better deals due to elderly sellers disinterested in profit margins.
  • Better odds of discovering a rare vehicle.
  • Simple listings that note key features.

However, classified listings lack high-tech conveniences:

  • Lower selection than online options
  • No comprehensive listings
  • No built-in messaging systems
  • No identity verification
  • No integrated payment solutions
  • No transaction guidance

DealNow lets you enjoy the pros of classified ads without the cons. After you find a car in the classifieds, bring the transaction to DealNow. Our platform makes private-party payments safe and easy. Besides payment, it also helps prospective buyers and sellers throughout the transaction. Keep reading to learn how.

Step 2: Protect Your Personal Information

Once you find a car, you’ll need to contact the seller. If you’re uncomfortable divulging your contact information, you could create a separate email address or use a service such as Google Voice to create a separate phone number.

These precautions work, but they’re cumbersome and might be confusing if you’re not tech-savvy. Plus, juggling multiple phone numbers and email addresses makes communication more complicated than it needs to be.

To avoid sharing more than you need to, contact the seller and invite them to join DealNow. Once they’re on the app, you can communicate using encrypted in-app messaging. The best part? During sign-up, you both verify your identities. This weeds out most scammers who target car buyers and puts you in contact with vetted sellers.

Step 3: Research the Vehicle

Once you’re talking to the seller, you need to research the vehicle. Ask the seller for a photo of their ID and the vehicle identification number (VIN). Then, run a title check and order a vehicle history report. Confirm that the seller is the legal owner, the vehicle has a clean title, and that the vehicle’s service history and specifications match the description and photos (if applicable).

This process requires legwork, but it will reliably keep you from buying a stolen or misrepresented car. Most legitimate sellers understand that transparency increases buyer confidence.

DealNow streamlines the verification process. Besides ID verification during sign-up, you can order a title check and vehicle history report from the app. You’ll know the seller is legitimate and has the right to sell the vehicle before you waste time on a test drive. Plus, any purchased reports remain easily accessible through your DealNow dashboard throughout the purchase process.

Step 4: Conduct a Test Drive

To schedule the test drive, you might need to go back and forth with the seller to find a time that works for both of you. Playing phone or email tag can slow things down and become irritating. When you transact through DealNow, the seller opens availability slots so you can find a time that works for both of you without wasting time or awkward conversations.

Whenever you’re meeting a stranger for a test drive, you should do so with a healthy amount of caution. Follow these best practices when conducting the test drive:

  • Meet in a busy public place, such as a grocery store parking lot or a police station.
  • Bring a friend or family member.
  • Meet during daylight hours.
  • Trust your instincts—if something feels off, leave.
  • Let others know where you’re going and who you’re meeting.
  • Verify their ID matches the vehicle title.
  • Verify the VIN on the title matches the VIN on the vehicle.

Besides safety precautions, pay attention to how the car performs.

  • Test all features and controls.
  • Drive on different road types.
  • Try various speeds.
  • Check acceleration and braking.
  • Listen for unusual noises.
  • Verify the odometer reading.
  • Look for signs of unmentioned damage.
  • Check that quality photos match reality.


The vehicle should match its description and provided service records. Note inconsistencies and discuss them with the seller before making an offer.

Besides simplifying the scheduling, transacting through DealNow keeps you safe during the test drive. Since we’ve verified the seller’s ID, you know who you’re going to meet.

Step 5: Sign a Bill of Sale

When it comes time to close the deal, both parties face a catch-22 that plagues private car sales: you don’t want to hand over payment until you get the car, and the seller doesn’t want to give you the car until they get paid. Neither of you wants to make the first move.

A bill of sale overcomes this trust problem by creating a legally binding document that protects both parties. This document records:

  • Names and addresses of buyer and seller
  • Vehicle details (make, model, year, VIN)
  • Selling price and date
  • Odometer reading
  • Any warranties or “as-is” declarations


Print two copies of your state’s official bill of sale (or use a generic template if not legally required). Both parties sign both copies, and each keeps one for their records. But paper bills of sale have two edge-case problems:

  1. A scammer might use a false identity, making the document worthless.
  2. A bad actor could take or destroy both copies after receiving payment.


In both cases, your legal protection disappears.

DealNow solves these issues with a state-specific digital bill of sale. Because we’ve verified the seller’s identity, you know you have their legal name on a binding document. Each party electronically signs in the app and receives an instant notification when the other has signed. Both parties retain permanent access to their documentation through their DealNow dashboard.

Step 6: Pay for the Car

With the bill of sale signed, you can confidently pay for the car. There are a lot of payment methods to choose from, but for high-dollar cars, they are awkward, slow, or risky. Physical cash, cashier’s checks, and wire transfers are the most popular options. Let’s look at their pros and cons compared to DealNow:

Pros Cons
  • Immediate transfer
  • No fees
  • Widely accepted
  • Risk of theft
  • Must verify bills
  • Awkward counting
  • Bank withdrawal limits
  • Bank-verified funds
  • Widely accepted
  • Relatively secure
  • Bank hours only
  • Can be forged
  • Verification delays
  • Secure for large amounts
  • No physical exchange
  • Can’t be forged
  • Requires bank details
  • Banking hours only
  • Can hours or days
DealNow
  • Instant transfer 24/7/365
  • No banking details shared
  • FDIC-insured accounts
  • Solves the trust problem
  • Integrated dealflow
  • None because we designed it to overcome the downsides of other payment methods

DealNow: The Best Way To Pay

DealNow isn’t just a digital payment platform—it’s a complete solution for classified car purchases. Besides helping you every step of the way, you can also arrange shipping (for long-distance purchases) and shop insurance policies through our in-app, third-party partners.

Now that you know what we do, let’s look at how easy a DealNow classified purchase can be:

  1. Create a DealNow account and verify your identity.
  2. Transfer funds to your FDIC-insured DealNow account.
  3. Find a classified ad you like and contact the seller.
  4. Bring them to DealNow.
  5. Purchase a title check, vehicle history report, and mechanical inspection from within the app.
  6. Use in-app messaging to arrange and perform a test drive.
  7. Both parties sign the digital bill of sale.
  8. Complete the instant payment.
  9. Receive the keys and the title, and enjoy your new(ish) car.

After you’ve used DealNow to buy a car from the classifieds, you’ll never want to do it any other way.

Classified Ads FAQ

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

You don’t need an escrow service to buy a car. Escrow services act as trusted middlemen so you can confidently continue with a private-party sale. Unfortunately, escrow services are expensive and slow.

DealNow gives you escrow-like security in the palm of your hand. Where an escrow company charges hefty percentage-based fees, DealNow only charges a small, flat fee.

Auction prices often run higher because of competitive bidding. Classified private sale listings are fixed and sometimes negotiable. Actions and classifieds can yield good deals, but for auctions, you need to enjoy the bidding format.

When buying premium vehicles, request comprehensive service records, additional photos of requested sections or angles, restoration photos (if applicable), detailed ownership history, and engine performance data. For modified vehicles, you’ll want documentation of all changes and upgrades. The more paperwork the seller can provide, the better.

Print classifieds rarely include photos, so you’ll need to request current pictures. Ask the seller to send quality photos of specific angles you’re interested in, especially any problem areas they’ve mentioned. Some prospective buyers request that sellers include today’s newspaper in photos to verify recency.

When a seller sends an email with photos, save them for comparison when you view the car. If the seller is unwilling to provide additional photos, you might want to continue your car search.

A high-volume seller could be an independent restorationist or represent an auto shop. Sellers who regularly list in specialty publications often provide a better buying experience. They typically maintain better documentation, understand market values, and provide accurate price estimates.

High-volume sellers usually offer consistent customer service and keep detailed maintenance records. While you might pay slightly more, the reduced risk and better documentation often justify the cost.

An absolute bargain on a late-model luxury vehicle should trigger a careful investigation. Extremely low prices often hide dodgy vehicles with titling, ownership, or mechanical issues. Be wary of sellers pushing specific payment methods, complicated stories, or an unwillingness to answer common buyer questions.

Dealership classified ads for cars for sale typically look more professional, with better ads with pictures and structured pricing. They usually offer multiple payment options and clearer acceptable payment forms. While their customer service might be better, you’ll usually pay more than buying from a private seller. Private-party ads offer more room for negotiation and often better prices, though you’ll need to be more careful about verification and documentation.

A vehicle history report shows you information about the vehicle’s past. This detailed report includes:

  • Number of previous owners and their locations by zip code.
  • Any major damage or accidents.
  • Service records and maintenance records showing repairs and upkeep.
  • Title status (whether it’s a clean title, salvage title, or junk title).
  • Any outstanding issues or liens.
  • Emissions standards testing documents.
  • Pre-existing damage reports.
  • History of non-routine maintenance.
  • Whether the vehicle meets local emissions standards.

DealNow lets you order a vehicle history report from your dashboard so you can easily verify the car’s condition before purchase.

Buying a car from a private seller isn’t just faster—it’s often cheaper too. Here’s why:

  • Fair prices: Whether you’re eyeing a pristine new model or a fixer-upper, private sales typically mean lower sales prices than dealerships.
  • More choices: From barely-driven luxury cars to well-loved classics, private sellers offer a range of options.
  • No dealer fees: Skip pesky documentation charges that can cost hundreds of dollars.
  • Skip the middleman: Dealerships buy low and sell high. With private sales, you’re cutting out that profit margin.

Bottom line? Private sales let you stretch your car-buying dollar further.

Getting a professional inspection before buying a used car is smart. Even if you’re experienced with cars, a reputable auto body shop can spot expensive issues you might miss.

A thorough inspection includes:

  • Comprehensive systems check using a light code reader to identify hidden problems.
  • Evaluation of all safety features including brakes, airbags, and restraints.
  • Detailed assessment of the frame and body for signs of accidents or pre-existing damage.
  • Review of service records to verify proper maintenance.
  • Evaluation of non-routine maintenance needs.
  • Testing of all advanced safety features.
  • Assessment of potential financial issues that could crop up soon.

The cost of an inspection (usually $100–$200) is tiny compared to the expensive issues it might uncover. It’s your best protection against buying a car with outstanding issues that could cost thousands to fix.

After a successful purchase, you’ll need to complete several steps:

  1. Get proof of insurance from your insurance agent before driving the vehicle
  2. Visit the Department of Motor Vehicles (DMV) with your signed-over title and sale documents to:
    • Register the vehicle in your name
    • Get a new license plate or transfer the existing one
    • Pay applicable taxes and fees
    • Get temporary plates if needed
  3. If needed, schedule a service station visits for:
    • Making major repairs
    • Troubleshooting a check engine lights or other issues
    • Completing emissions testing

You might legally own the vehicle, but it’s not legal to drive until it is registered with the state, insured, and mechanically safe.

Most states require the buyer of a car to pay sales tax on the purchase, whether you pay with physical cash, DealNow, or any other payment method. Besides sales tax, there aren’t any other tax implications when buying a car.

Here’s what you need to know about tax implications for vehicle purchases in a general sense. 

  • 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 fair market value.
  • 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.
  • Individual sellers don’t collect tax: You will pay sales tax at your local Department of Motor Vehicles when you register the car.
  • No income tax: A private-party transaction 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 luxury vehicle. Individual state rules differ.
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