Craigslist is a free, simple website where you can find cars for sale, but that’s about it. The platform has no built-in payment system, leaving private sellers and buyers to figure out the money transfer on their own.
We’ll guide you through your payment options and their pros and cons. Then, we’ll introduce you to a better way to instantly and securely pay for a car you found on Craigslist.
Craigslist makes it easy to browse thousands of listings and find local cars for sale. You can filter by private sellers, makes, models, etc. But that’s where the convenience ends. The platform lacks:
Once you’ve found a car, you’re on your own to figure out the rest of the sale. When dealing with a stranger, you’ll have to think about speed, convenience, safety, and price when you choose a method of payment.
Physical cash is immediate and you don’t pay transaction fees. But carrying large amounts of cash to meet a stranger creates unnecessary risk and awkwardness.
Try this scenario: You’ve found a $15,000 Honda Accord on Craigslist. The seller suggests meeting in a grocery store parking lot. You withdraw the cash from your bank, but now you’re faced with counting fifteen thousand dollars while looking over your shoulder in a public place. The seller needs to verify each bill isn’t counterfeit. Meanwhile, you’re both wondering if the other person has honest intentions.
For paying a couple of thousand dollars for an old beater, cash is fine. But for a $15,000 Accord or a $50,000 F-150, you should choose a more secure solution.
Wire transfers are a secure way to pay for a Craigslist car. Your bank verifies your funds and sends them to the seller’s account.
Real estate deals, business purchases, and car sales often resolve via wire transfer because of their reliability and security. When you initiate a wire transfer, you can be confident your money will reach its intended destination.
But wire transfers are showing their age. They’re slower than new, high-tech payment solutions. Here’s what you’ll need to do to pay for your Craigslist car via wire transfer:
A potentially slow information exchange, banking hour restrictions, and processing time make wire transfers a slower alternative to digital payment platforms or physical cash. If you’re looking for a faster way to pay, keep reading.
Cashier’s checks are a more manageable alternative to carrying stacks of cash to your Craigslist meetup. Instead of counting out bills in a parking lot, you hand over a single check for the full purchase amount. Private parties like cashier’s checks because, unlike personal checks, the bank guarantees the funds so they can’t bounce.
There’s also virtually no limit to the check amount. Once the seller verifies the check, they can continue the sale knowing it will clear. Whether you’re buying a $5,000 commuter car or a $50,000 luxury vehicle, a cashier’s check can handle it.
Skilled forgers have gotten good at creating convincing fake cashier’s checks, so smart Craigslist sellers will insist on verifying the check’s legitimacy.
Here’s how a typical Craigslist transaction using a cashier’s check works:
Notice how many times “your bank” pops up in the process? The main drawback is that you’re limited to banker’s hours for getting and verifying the check. Ready to close on Saturday afternoon? You’ll wait until Monday to finish.
Even after getting the check verified, some sellers might insist on waiting for it to clear before signing over the title. While the funds are guaranteed by your bank, the clearing process can take several business days. You could get stuck in limbo: no car, and your money is tied up.
Cashier’s checks are relics of the pre-digital era. There are faster, more convenient ways to safely pay for a car.
Peer-to-peer payment apps are a common way to split dinner bills or pay your roommate for utilities. But these apps weren’t designed for large purchases between strangers.
PayPal is the exception. It allows transfers up to $60,000 if you have a verified account. But you’ll pay dearly for the privilege. Their 2.9% fee plus 30 cents means you’re looking at nearly $1,800 in fees on a $60,000 transaction. Expect to foot the fees if you insist on using PayPal.
Credit cards make merchant transactions extremely convenient, but they don’t work for private-party transactions. Most sellers lack the infrastructure to directly accept credit cards. If they can accept cards, they’ll need to go through a third-party processor, such as Stripe. Processors charge upwards of 3% in fees, offsetting any cashback rewards and eating into your wallet.
For example, say you’re buying a Toyota Tacoma for $35,000. With Stripe’s 2.9% plus 30-cent fee, you’d pay an extra $1,015.30 just to move the money. If you insist on paying by credit, expect to cover the fee.
Some Craigslist sellers advertise that they accept cryptocurrency. While blockchain technology offers security and peer-to-peer transfers, crypto is too complicated and volatile for most private buyers and sellers.
Both parties need digital wallets and a solid understanding of crypto transactions. Even if you clear that hurdle, crypto’s volatility makes it risky. That $20,000 car you’re buying could effectively cost you $22,000 or $18,000 by the time the transaction clears, depending on how the market swings.
The IRS considers crypto to be property, not currency. This means your car purchase could trigger capital gains taxes. Add in the complexity of converting cash to crypto, the risk of entering a wrong wallet address, and evolving regulations, and cryptocurrency becomes more trouble than it’s worth for most Craigslist transactions.
If you like the idea of instant payments with digital cash, we’ve got a safer, more convenient solution.
DealNow lets you pay for a car instantly and securely, no matter the price. It combines the speed of cash, the security of a wire transfer, and the convenience of a digital payment app.
Here’s what you can expect when you pay for a Craigslist car with DealNow:
Here’s how to use DealNow for your Craigslist car purchase:
DealNow transforms risky Craigslist transactions into secure, professional deals. You get the competitive prices of Craigslist, plus the security that Craigslist lacks.
Craigslist scammers use sophisticated tactics to separate legitimate buyers from their money. Because the platform has no verification system, anyone can create a vehicle listing under any name. Protect yourself by following these safety practices:
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.
Craigslist has a high potential for fraud. It provides no:
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.
Some sellers prefer cash. They might want to avoid fees, or it might be the best payment method they know about for private-party transactions. Whatever their reason, protect yourself in a cash transaction by:
A trustworthy seller should be open to secure payment alternatives that protect both parties. You can ask them if they are willing to try DealNow and mention that instant payment, ID verification, funds verification, and instant payment between FDIC-insured accounts keep them safe and help them finish the deal quickly.
Scammers create fake escrow services and pressure buyers to wire money to them. Only use established, licensed escrow companies. Don’t agree to use an escrow until you have independently verified it—or better yet, use DealNow for escrow-like protections without the hassle and expense of traditional escrow.
Some sellers ask to verify the funds of potential buyers because they don’t want to deal with time-wasters. There’s no risk in meeting them at your bank to show them you can back the transaction. If they agree to transact with DealNow, you can mention that funds verification is part of the process, so they can proceed with the selling process confident that you can pay for the car.
While it’s possible to split payment between methods (like part cash, part cashier’s check), this adds complexity and risk to the transaction. Each payment method has its own verification timeline and security issues. It’s safer to use a single, secure payment method that can handle the full amount.
Long-distance Craigslist purchases are especially risky. You need a payment method that protects you while coordinating shipping and title transfer across state lines. DealNow’s platform includes integrated vehicle shipping services and handles interstate paperwork requirements to help you close the deal safely.
After a successful purchase, you’ll need to complete several steps and fill out additional paperwork:
You might legally own the vehicle, but it’s not legal to drive until it is registered with the state, insured, and mechanically safe.
Even if you’re experienced with cars, a reputable auto body shop can spot expensive mechanical issues you might miss. You should have a professional inspect the vehicle in person before agreeing to buy a used car.
A thorough inspection includes:
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.
A vehicle history report shows you information about the vehicle’s past. This detailed VIN check includes:
DealNow lets you order a vehicle history report from your dashboard, making it easy to verify the car’s condition before purchase.
There are two ways to buy a car for your friend.
Both ways end with your friend legally owning the car.
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.
Buying a car from a private seller isn’t just faster—it’s often cheaper too. Here’s why:
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.
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.
