When buying a used car, Private Seller Exchange (PSX) offers another option for peer-to-peer sales. Offered by Autotrader, PSX is a more transparent, safe, and efficient method for individuals to buy cars in a peer-to-peer environment. It allows car buyers and sellers to save money. Read on to find out more.
What Is Private Seller Exchange?
- Offered by Autotrader, Private Seller Exchange (PSX) is a marketplace to buy or sell a vehicle from a private seller more safely and quickly.
- Acts as a go-between for the buyer and seller, securing different aspects of the transaction, like vetting participants, safeguarding the transaction, and transferring the title.
- Addresses common concerns in peer-to-peer transactions, like security worries when exchanging funds or arranging test drives between strangers.
How Does PSX Work for Buyers?
- Provides a variety of services that secure different parts of the transaction.
- Acts as an intermediary, speeding up fund exchanges and title transfers.
Is the Private Seller Exchange Safe?
- Yes, because it gets involved in stages of peer-to-peer transactions where there’s often doubt or distrust.
- Verifies the identities of both parties.
- Provides vehicle history reports.
- Ensures a clean title transfer.
- Safeguards the exchange of funds.
- Assists with vehicle registration in certain states.
Financing Options with PSX
Various lenders offer financing options through Private Seller Exchange. Benefits include:
- Buyers can apply quickly and easily.
- Buyers receive approvals often on the same day.
- Lenders close the loan online.
Benefits for Buyers Using Private Seller Exchange
- Better pricing for both buyers and sellers compared to dealer transactions.
- Daily support for queries.
- Identity verification for security.
- Secure messaging system for buyer-seller communication.
- Complimentary vehicle history reports for buyers.
- Option for a free presale inspection.
- Secure payment methods.
- Availability of financing options, gap insurance, and warranties.
- Handling of paperwork and title transfers in certain states.
- Shipping options for vehicles, if desired.
Cost of Using Private Seller Exchange
- Buyers are responsible for local sales taxes, registration, and license fees.
- Additional fees can apply depending on whether the buyer finances the vehicle or pays cash and where the buyer resides.
Who Should Use PSX?
- Ideal for buyers and sellers seeking a secure, low-risk, hassle-free, and faster transaction process.
- Suitable for those who value peace of mind and the expertise that Autotrader brings with its decades of peer-to-peer experience.
If I live in Arizona and will register the vehicle in Arizona, which does not charge sales tax on private party sales, but am executing the purchase from a Seller in California, can you confirm that the Private Seller Exchange will not collect and charge sales tax on the transaction?
Any sales tax is collected for the state where the vehicle will be registered. The seller’s location doesn’t enter into the equation.
Why am I forced to pay document and title fees as the buyer? It’s clearly not listed in the section above about fees. It only says taxes and registration are charged, unless the vehicle is being financed. I am paying cash.
Hi Tim. See this from the FAQ for buyers using the Private Seller Exchange platform:
If I buy a car from Private Seller Exchange do I have to pay tax, title and registration fees?
In most cases, yes. It’s the law.
In the 45 US states that charge a sales tax, you must pay sales tax regardless of whether you purchase a car from a dealership, from a private party, or from your Aunt Lucy.
In all 50 US states you must pay vehicle fees (such as title and registration).
When purchasing through PSX, we will collect and remit your state and county-specific taxes and fees for you, so that you’re protected from fraud and guaranteed to secure ownership of your new vehicle.
I called Autotrader support and they said, Dealers cannot buy cars from PSX, is this true? I see a comment that says Dealers can purchase it from PSX
Anyone can buy a car through PSX. However, the platform is for individuals, not dealers, selling their vehicles.
So I’ve asked the seller for his address so I can line up the 3rd party car hauler and he has gone dark. Do you hold my funds till the car is in my possession ?
nevada does not charge sales tax on private party vehicles. would i still pay sales tax going through PSX?
Thanks for reading, @ared. PSX would not collect any taxes on the sale because private party vehicle sales are exempt from sales tax.
Can you confirm the same will apply in Arizona which also does not charge sales tax on private party vehicles?
Other than sales tax what fees does Autotrader charge buyers to complete the sale.
Thanks for reading, Patrick. There are no surcharges or premiums when buying a car through the Private Seller Exchange. Buyers using PSX pay the price for the car, as well as sales tax and registration fees, when appropriate. Additional fees can apply depending on whether the buyer uses Autotrader’s financing options.
Why does psx auto trader charge sales tax on private transactions for used cars when if you pay the seller directly there is no sales tax?
Thanks for reading, David. Collecting tax on the sale is a benefit of using PSX for private sales. In the 45 US states that charge sales tax for automobiles, you must pay sales tax regardless of whether you purchase a car from a dealership, a private party, or your Aunt Lucy. PSX collects and remits your state and county-specific taxes and fees for you, protecting you from fraud and guaranteeing the ownership of your new vehicle.
Are dealers supposed to be on PSX?
Hi Sam. Thanks for reading and asking about PSX. Autotrader’s Private Seller Exchange is a platform for individuals to sell their personal vehicles. Dealers can purchase cars listed on PSX, but advertisements for the vehicles they’re selling should not appear in our regular Used Cars section and not in the area for Private Seller Cars.
PSX mandatory or optional?
Hi James. You automatically use the Private Seller Exchange platform when you place an ad to sell your car on Autotrader. When buyers and sellers communicate and transact through the application, our safe and secure platform minimizes the odds of fraud and risk for both parties.
I can’t find anywhere on the Autotrader site where it says clearly whether PSX is mandatory if you’re selling as private party, or is it optional?
Hi Chris. You’re seamlessly using the Private Seller Exchange platform by placing an ad on Autotrader to sell your car. When buyers and sellers communicate and transact through the application, our safe and secure platform minimizes the odds of fraud and risk for both parties.
I sold my truck to a local buyer. The buyer and I arranged to have the payment electronically transferred to my bank. Yes, the bank and my credit union are 100% rock solid. I now have the funds in my account and it’s been a month. Done deal. PSX is now emailing me demanding the title and paperwork that was sent to me via FedEx. FYI: The buyer took the title to the local DMV, paid the taxes and received new tags and a title from our state DMV.
Why is PSX emailing myself and the buyer to send the title and accompanying documents? Do they want to charge a fee? Do they want to sell the buyer financing? This to me is a ripoff.
Hi Larry. I’m sorry you’re experiencing some difficulty. The best thing to do is call the support team at 1-866-288-6872 (1-866-AUTOTRADER) and speak with a Private Seller Exchange representative who can help iron out the rough spots you’re having with this transaction.
If I find a buyer for my vehicle outside of Autotrader and direct them back to my ad in Autotrader and the private seller exchange is there any cost to the buyer. FYI, I am aware of the fees the seller is responsible for.
Thanks for the question, Mark. Autotrader’s Private Seller Exchange helps buyers with quick, low-risk, and hassle-free transactions. In most states and when paying with cash, PSX collects a fee from buyers to cover the cost of securing the car title from the seller and ensuring it is completed correctly. Encourage your potential buyers to read how PSX helps consumers safely buy and sell cars.
I am buying a car in Tennessee and having it registered in indiana. I have financing through a credit union but I’m confused about title taxes and registration. I couldn’t understand the autotradors explanation for the state of Indiana. Any help would be appreciated! I’m looking to get this car bought soon!
Hi Jennifer. Thanks for reading and using the Private Seller Exchange. Any state tax, title and licensing fees, as well as documentation fees vary by state. When buying through the PSX platform, the money is passed to your state and municipality for registration. To help make the process runs smoothly, ensure that the mailing address in your profile is set to Indiana address so the platform charges tax and registration appropriately. Take a look at the Private Seller Exchange Buyer Guide for more info.
I live in Chicago – so if I pay the $49 fee to list my car (an Audi), what is the total cost for me then selling the car ? It really doesn’t say ? Who handles how to sign the title, verifiying the cash comes to me first etc. etc. Also, is there anyone to talk to about advise on asking price based up previous sales ?
My question is: Does the paperwork verify that this is a purchase from a PRIVATE PARTY. I am in Nevada and if I purchase a car from a PRIVATE PARTY then I DO NOT have to pay any sales tax. So the bill of sale must show that I am purchasing from a private party.
Please respond.
Thank you for reading, Steve. If purchasing from a private owner, you can request a bill of sale from the owner and they can make the addendum that states they are a private owner selling to you. Please let us know if this works out for you.
Steve,
Did this work out for you. I am in a similar situation as you