How To Buy a Car on Craigslist

If you want to buy a used car without paying dealership prices, look for your next car on Craigslist. But buying a car on Craigslist involves dealing with unverified sellers and unvetted cars.

To safely finish the deal, you might want some outside help. We’ll walk you through the private-party car purchasing process using Craigslist and introduce you to a new tool that can help you finish the deal quickly and securely.

Step 1: Understand Craigslist

Craigslist’s strength is simplicity. Anyone can list a car for free, which means you’ll find lots of private-party vehicles for sale. The platform’s basic interface lets you search by location, price range, and vehicle details. This accessibility has made Craigslist one of America’s most popular places to buy and sell cars.

But that simplicity comes at a price. Craigslist is just a meeting place for buyers and sellers—it doesn’t provide the tools you need to safely purchase a vehicle:

  • No identity verification: Anyone can create a listing using any name they choose. You have no way to verify that you’re dealing with the vehicle’s actual owner.
  • No secure messaging: To contact a seller, you’ll need to share your email address or phone number with a stranger.
  • No payment solution: Once you find a car you like, you have to figure out how to safely transfer a large sum of money to a stranger.
  • No transaction guidance: After you locate a vehicle, you’re left to manage all the paperwork, payment, and legal requirements by yourself.

These hurdles can be overcome by smart choices, healthy suspicion, and a bit of effort. We’ll guide you through the process. But we’ll also show you how DealNow makes buying a car on Craigslist as safe and easy as buying from a dealership. From initial verification to closing paperwork, DealNow guides you through the vehicle purchase process and lets you make no limits, instant payments so you can finish the deal quickly.

Step 2: Find a Car

Craigslist’s basic interface makes it easy to find cars for sale, but you’ll need to wade through dealer listings and watch out for scams.

Filter Out Dealer Listings

You won’t get a better deal for looking at dealership listings on Craigslist versus on the lot. Use the “owner” filter at the top of your search, then watch for dealerships hiding their listings in the owner category by looking for multiple vehicle listings from the same user or photos taken at a dealership. Check the seller’s other listings—if they’re selling multiple cars, they might be a dealer.

Spot Fake Listings

Scammers flood Craigslist with too-good-to-be-true deals. Be suspicious of prices significantly below the Kelley Blue Book value, stock photos instead of real pictures, or listings with minimal details about the vehicle. Legitimate sellers provide clear photos of their car and include specific information about its condition and history.

Recognize Common Scams

Most Craigslist car scams follow predictable patterns. The “seller” claims they’re deployed overseas, moving soon, or can’t meet in person. They pressure you to pay for the car before seeing it. Or they insist on taking communication off Craigslist right away to get your contact information. If a listing exhibits these patterns, move on.

Instead of playing detective, invite sellers to DealNow. Our secure platform weeds out scammers. When you invite a seller to complete a car transaction on DealNow, their first account creation step involves ID verification. Most scammers hide behind aliases and won’t continue the transaction, saving you time and keeping your car search stress-free.

Step 3: Protect Your Personal Information

When you inquire about a Craigslist car listing, the platform shares your email address with the seller. You’ll need to take extra steps to shield your contact details from scammers that target car buyers.

You could create a temporary email address for Craigslist communications. Gmail makes it easy to set up a new account that forwards to your main email. This keeps your primary email private and lets you shut down the temporary address if it starts receiving spam.

Phone number protection requires similar creativity. You might use Google Voice or another service to get a free number that forwards to your phone. When the car purchase is complete, you can delete the temporary number. Some people prefer to communicate solely through Craigslist’s email relay system until they’ve verified the seller.

Never share your home address, workplace, social media profiles, or other sensitive information with a Craigslist seller. Don’t tell the seller where you live or work, even if they ask to meet there for convenience.

While these precautions work, they’re cumbersome and might confuse non-tech-savvy buyers. DealNow eliminates the need for temporary emails and phone numbers. In-app messaging keeps your contact information private while enabling easy communication between you and the seller. You can discuss vehicle details and coordinate the sale without exposing your personal information. Because we verify the identity of both parties, you know exactly who you’re dealing with, and they know who you are, but your info stays private.

Step 4: Verify the Seller and Vehicle

On Craigslist, you can’t verify that a seller owns the car they’re advertising. They might be selling a stolen vehicle, or they might not have a car at all. You’re dealing with a stranger who could disappear after taking your money.

Without a transaction platform, you’ll need to do your due diligence the old-fashioned way. You should start by verifying the vehicle. Ask the seller for the vehicle identification number (VIN) and run a title check and vehicle history report through a service such as Carfax or AutoCheck. You can also ask for a photo of the seller’s ID to check that it matches the information on the title report.

Later during the independent inspection, check that the VIN on the report matches the one on the dashboard, door jamb, and title. Also, check the seller’s ID in person. The process requires a bit of legwork, but it will reliably keep you from buying a stolen car or falling victim to a misrepresentation scam.

DealNow streamlines the verification process. Besides ID verification, you can order a title check that cross-references DMV records. You’ll know the seller is legitimate and has the right to sell the vehicle before you waste time on a test drive. You can also purchase a vehicle history report from your DealNow dashboard. What normally takes hours of gathering documentation, asking awkward questions, and cross-checking details happens automatically in our app.

Step 5: Schedule a Safe Test Drive

Since Craigslist lacks verification features, you don’t really know who will show up to meet you for the test drive. From oddballs to criminals, you need to be ready for anything. Follow these best practices for a safe Craigslist test drive:

  • Meet in a busy public place, such as a grocery store or police station parking lot.
  • Bring a friend or family member with you.
  • 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 before starting the test drive.

Besides safety precautions, pay attention to the vehicle. Test all features, drive on multiple road types, cruise at different speeds, and check acceleration and braking. The vehicle should match its description, photos, and service records. Note inconsistencies and discuss them with the seller.

DealNow takes the anxiety out of test drive scheduling. Because we’ve already verified the seller, you know who you’re meeting. Our in-app scheduler lets you select from the seller’s preset availability so you can skip the back-and-forth coordination. Both parties get an instant notification when the test drive is scheduled, and you can message securely through the app if plans change.

Step 6: Sign a Bill of Sale

When it comes time to pay, both parties face a catch-22 that Craigslist can’t overcome: 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.

A bill of sale overcomes this trust problem by creating a legally binding document that protects both parties. This document records the terms of your agreement, including:

  • 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


You could print two copies of your state’s official bill of sale, meet the seller, and you both could sign them. Each person keeps one for their records. But there are a couple of problems with paper bills of sale:

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


In both cases, your legal protection would disappear.

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 our mobile app and receives an instant notification when the other has signed. You both retain a copy in your DealNow dashboard, safely stored in the cloud and always accessible.

Step 7: Pay for the Car

After the test drive, you’ll face one of the trickiest parts of a successful purchase: safely transferring a large sum of money to a stranger. Craigslist has no integrated payment system, so you’ll have to handle payment on your own. Traditional payment methods are risky, inconvenient, slow, or all of the above. Physical cash, cashier’s checks, and wire transfers are the most popular traditional payment methods. Let’s look at their pros and cons along with DealNow:

Pros Cons
Physical cash
  • Immediate transfer
  • No fees
  • Widely accepted
  • Inconvenient to withdraw large amounts
  • Must count bills in front of a stranger
  • Seller must verify bills
  • Risk of theft or robbery
  • Secure
  • No transfer limits
  • Cheap
  • Must purchase at bank during business hours 
  • Seller must verify at bank during business hours
  • Can be forged
  • Secure for large amounts
  • Can’t be forged
  • No physical exchange required
  • Both parties pay fees 
  • Requires collecting seller’s bank details 
  • Limited to banking hours 
  • Process can take a day or more
DealNow
  • Instant transfer, 24/7/365
  • No amount limits
  • Bank-level security
  • Integrated dealflow and buyer features
  • None

DealNow is the safest, fastest way to pay for a car you found on Craigslist. We’ve touched on the DealNow throughout the article, now let’s look at the DealNow process in action.

How To Buy a Craigslist Car With DealNow

We make the private-party car purchasing process smooth and simple. Here are the steps you’ll take when you use DealNow to buy a car from Craigslist:

  1. Create a DealNow account and verify your identity.
  2. Find a car on Craigslist
  3. Invite the seller to your DealNow dealroom.
  4. Transfer funds to your FDIC-insured DealNow account.
  5. Order a title check and vehicle history report from your DealNow dashboard.
  6. Use in-app messaging to ask questions and in-app scheduling to arrange a meeting.
  7. Test drive the car.
  8. Both parties electronically sign a legally binding bill of sale.
  9. Transfer funds instantly and securely.
  10. Take possession of the vehicle and enjoy.

So take advantage of Craigslist’s large selection and competitive prices. Then, bring the transaction to DealNow. Once you’ve bought a car with DealNow, you’ll never want to do it any other way.

Buying From Craigslist FAQ

Can I Buy a Craigslist car long-distance using DealNow?

You can use DealNow to buy a long-distance car anywhere in the USA. After finding a car on Craigslist, use DealNow to handle the transaction. Our platform verifies the seller’s identity and vehicle ownership, provides secure payment, and includes digital bills of sale.

Importantly, instant payment allows the inspector to act as your agent. They will inspect the vehicle, communicate its condition by phone or video call, handle the title transfer, and coordinate with your shipping company. What used to be a long, complex, and risky process is now as easy as buying in person.

Craigslist provides no:

  • Identity verification.
  • Secure messaging.
  • Payment protection.

Once you’ve found a car on Craigslist, bring the transaction to DealNow to enjoy a suite of security and verification features and a step-by-step guided dealflow. Our platform provides the security infrastructure that Craigslist lacks.

Craigslist doesn’t provide a payment infrastructure; buyers have to figure out how to safely transfer large sums to strangers. Traditional methods such as cash, checks, and wire transfers are risky or inconvenient. DealNow offers instant, secure payments of any amount with built-in safeguards and identity verification.

Craigslist scammers who target buyers use sophisticated techniques to get your money or information. Because the platform has no verification system, anyone can create a listing under any name. Protect yourself by following these safety practices:

  • Watch for red flags like prices too good to be true.
  • Never wire money to strangers.
  • Meet in a public place for test drives.
  • Verify the seller’s ID matches the vehicle title.
  • Check the VIN and vehicle history.

While these precautions help, the best protection is to bring your transaction onto DealNow. Our secure platform verifies seller identity and vehicle ownership before you risk meeting a stranger or sending payment, and a digital bill of sale legally protects you against scammers.

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, making it easy to verify the car’s condition before purchase.

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.

A bank transfer is secure, but once your money is sent, it’s out of your control. That’s why we recommend using a bill of sale, doing your research, and getting a professional pre-purchase inspection. Don’t pull the trigger until you’re confident in your purchase.

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.

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

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

There are two ways to buy a car for your friend.

  1. Give them money to pay for the car: If you want to help a friend out or you don’t care about surprises, you can either transfer money to them so they can pay for the car, or you can accompany them during the purchase and handle payment. They will sign the title. Remember that they also need to pay sales tax at the DMV, so if you want to pay for everything, you should accompany them.
  2. Buy the car yourself and subsequently transfer it to them: This is a good option if you want to surprise a friend. When you want to give it to your friend, you can transfer the title and in the “Sale Price” box, write “Gift.” This legally gives them the car without requiring additional sales tax.

Both ways end with your friend legally owning the car.

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

  • More choices: From barely-driven luxury cars to well-loved classics, private sellers offer a range of options.
  • Fair prices: Whether you’re eyeing a pristine new model or a fixer-upper, private sales typically mean lower sales prices than dealerships.
  • 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.

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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