Autotrader’s New PSX Helps Consumers Safely Buy and Sell Cars

Private Seller Exchange Quick Facts

• Private Seller Exchange is a safer, quicker way to buy or sell a vehicle.
• Autotrader’s service lets consumers safely transact, including exchanging funds and the car title.  
• Buyers and sellers can use as many or as few of the Private Seller Exchange features as they want.

For those of us who have never participated in a private-seller (peer-to-peer) car transaction as a seller or buyer, the entire venture can seem fraught with uncertainty and distrust. Truth be told, peer-to-peer (P2P) sales take place by the thousands each year without a hitch.

We can say that because Autotrader hosts a big chunk of those sales and has for decades. However, there are sufficient issues from time to time to raise some doubts and fears. If questions of security, safety, and scams prevent you from checking out selling or buying a car P2P, Autotrader’s Private Seller Exchange (PSX) brings guarantees and trust back to the process.

An overblown boast? Not at all. When Autotrader set about bolstering confidence and security in P2P transactions, we drew on years of observations and experience in facilitating private-party sales. Sure, Autotrader is in the business of helping the public buy and sell cars to make a buck. However, we also recognize our responsibility to help protect both parties in a P2P sale to sustain that business. In other words, the Private Seller Exchange isn’t a marketing ploy hatched in a midmorning brainstorming session. It’s a better, safer, more convenient way to buy or sell a car between private parties, methodically developed, with wisdom gained through years of experience and customer feedback.

Still have doubts? We make the case for the safer PSX sales environment below. We’ll explain what it is, how it works, why it’s safe, and what it costs.

• What Is the Autotrader Private Seller Exchange?
• How Does PSX Work?
• Is the Service Safe?
• Can I Finance Through the Private Seller Exchange?
• What Are the Benefits of the Autotrader Private Seller Exchange?
• How Much Does the Service Cost?
• Who Should Use the PSX?

What Is the Autotrader Private Seller Exchange?

The Private Seller Exchange is a safer process for peer-to-peer car sales in which Autotrader acts as a go-between for the buyer and seller and secures different aspects of the transaction, like vetting the participants, safeguarding the transaction, and transferring the title. PSX addresses certain aspects of a P2P transaction that often generate anxiety or even a level of distrust. For example, exchanging funds or arranging a test drive between strangers can cause security concerns. PSX overcomes such issues, offering guarantees and guidance to enlighten and protect both parties.

How Does It Work?

Nearly transparent in its application but powerful in its results, the PSX provides a grocery list of added services from which buyers and sellers may choose. Several of these services help secure the transaction in one way or another. Think of Private Seller Exchange as an umbrella of protection safeguarding both parties in the sale.

The service can even speed up the process in many respects because it acts as an intermediary between buyer and seller, greasing the wheels in exchanging funds and transferring the title. In other words, the exchange shoulders the risk, allowing a speedier conclusion to the transaction. We’ll dig deeper into the affordability of the exchange below.

Is the PSX Service Safe?

Yes, it’s exceedingly safe because the exchange inserts itself into the steps of a peer-to-peer transaction where doubt, uncertainty, and distrust are factors. Usually, a peer-to-peer car sale involves two strangers. And, even where the parties are known to one another, certain aspects of the transaction can unintentionally go wrong. For instance, the title can be an issue: Is it clean, correctly filled in, and so on? Let’s look at some stickier elements of a P2P transaction and how the service makes them safer.

1. Condition of the Vehicle

PSX provides the potential buyer with an AutoCheck vehicle history report. A vehicle résumé of sorts, the history report provides a chain of ownership, odometer records, a crash history, and so on. Unless it has new car factory warranty coverage remaining in force, every PSX sale is on an as-is basis. However, many PSX sellers qualify for a free presale inspection upon request. Consequently, if the seller hasn’t exercised the option for a free inspection, the buyer can request one.

RELATED: Powertrain Warranty vs. Bumper to Bumper: What Is the Difference?

2. Identity Checks

The Private Seller Exchange service verifies the seller’s and buyer’s identities and driver’s license information. The information remains confidential. PSX facilitates communication between the parties using a message system, allowing buyers and sellers to communicate without revealing contact information. Consequently, neither party needs to hand over phone numbers or addresses until each becomes comfortable doing so.

3. Title

An area ripe for fraud is the car title. As part of its standard service, PSX verifies that the vehicle is registered to the seller and that the seller or lienholder has the title in hand, assuring buyers the exchange is safe. Once PSX verifies and secures the funds from the buyer, the service obtains the title from the seller. If there’s a lienholder, PSX pays off the loan with proceeds from the buyer and secures the title before sending any excess funds to the seller. Depending on the state in which the vehicle will be registered, PSX either forwards the completed title to the buyer or assumes the responsibility of registering the vehicle. More details on transferring the title are below.

4. Exchanging Funds

Before PSX, the most worrisome aspect of a peer-to-peer sale was the exchange of funds, when the buyer hands over the form of payment and the seller (or lienholder) hands over the title. We just covered how the service protects the buyer in securing the title. However, the buyer and seller must be confident in the security of the payment. PSX provides that as the go-between, accepting and securing payment and then digitally transferring the funds to the seller, paying off the lien (if there is one) on the way.

There are several accepted forms of payment for most typical P2P transactions; however, each has a disadvantage for either the seller, the buyer, or both. Before PSX, either the buyer or the seller would take a leap of faith to complete the transaction. The service eliminates this concern. Accepting cash payments through wire and electronic transfers and credit and debit cards, PSX receives and secures the funds from the buyer and the verified title from the seller or lienholder. At this point, PSX digitally transfers the funds to the seller.

5. Registering the Vehicle

If the buyer lives in California, Florida, Texas, or Washington (and soon Ohio and Arizona), PSX registers the vehicle for the buyer. Other states may soon follow. The service forwards the completed title to buyers outside those states, who must file the title, pay taxes, and register the vehicle. We explain this situation below in the cost section.

Can I Finance Through the Private Seller Exchange?

Yes, the service offers the option of financing your used car purchase. It works with an array of lenders catering to borrowers with a wide range of credit scores. You can apply, receive approval, and close the loan online, often on the same day. Although it becomes more complicated, buyers can secure their financing outside PSX lenders.

What Are the Benefits of the Autotrader Private Seller Exchange?

A long list of benefits accrue when using the exchange. Some save time and concern for the seller, while others target the buyer. In a few of the cases already discussed, both parties benefit from PSX features. Here are the primary advantages of Private Seller Exchange.

• Private seller prices – Although it seems counterintuitive, P2P sales typically mean the seller receives more while the buyer pays less than when transacting with a dealer. This remains true with PSX transactions.
• Daily support – PSX is available daily to answer any questions from the buyer or seller regarding the transaction.
• Identity verification – Seller and buyer must produce a valid driver’s license, which PSX checks and verifies.
• Secure messaging – Until the buyer and seller are comfortable sharing their contact information, PSX will act as a passthrough for questions, answers, and setting appointments.
• Test drive – If the buyer desires a test drive, the exchange will help arrange the time and place.
• Vehicle history report – Potential buyers will receive a complimentary copy of the vehicle’s AutoCheck history report, providing details of maintenance, any past accidents, the number of past owners, and more.
• Free inspection – If Autotrader determines the vehicle requires an inspection, PSX arranges and pays for it.
• Secure payment – PSX receives and secures payment once the buyer and seller agree on a price. That payment isn’t released to the seller until it has received a completed and verified title.
• Financing – With a battery of trusted lenders standing by, Private Seller Exchange offers online financing options for buyers with varying credit scores.
• Gap insurance – If you finance your purchase and later total the car, your insurance company will only pay the car’s current book value. You can purchase the option of gap insurance to cover the difference between what you owe on the loan and what the vehicle is worth at the time of the crash. Not all buyers will need this insurance, but it’s an option if you do.
• Available warranties – Buyers can take advantage of available, affordable protection plans.
• No paperwork hassles – In many cases, PSX handles all the paperwork. This is true for all deals when the vehicle is financed and cash sales for buyers in states like Florida, Texas, California, and Washington. In other states, the sale will be an escrow deal. PSX will still handle the title verification, but it will overnight the title to the buyer, who will then need to file the title and register the vehicle with the state where they reside.
• Shipping options – If the vehicle is outside the buyer’s local area, PSX helps facilitate delivery through its shipping partners.

How Much Does the Service Cost?

The good news about extra costs associated with PSX is that it costs the standard $49 listing fee a seller spends to list the vehicle on Autotrader plus a service charge for the final transaction amount. Read on to learn about the seller fees below.

What Does the Seller Pay?

In addition to the original upfront $49 listing fee, the seller pays nothing additional until the vehicle sale is finalized. Then PSX collects a service charge of $99 or .99% (whichever is greater) of the final transaction amount. For example, if the transaction amount is $10,000 or less, the PSX fee comes to $99. If it’s more than $10,000, the cost is .99% of the transaction price. In that case, for a sale with a final transaction price of, let’s say, $15,000, the assessment would be $148.50 (15,000 x .99% = 148.50).

What Does the Buyer Pay?

No matter where a buyer lives or if the purchase is P2P or through a dealer, the buyer is on the hook for local sales taxes, registration, and license fees, plus whatever other fees the local government demands. Those are standard and have nothing to do with PSX. In those cases where PSX is filing the title and registering the vehicle, PSX will collect the taxes and fees from the buyer and the seller’s payment.

Buyer Cost When Financing the Vehicle

If a buyer is financing the vehicle, PSX processes all the paperwork, including filing the title, registering the vehicle, and paying all taxes and fees collected from the buyer. An additional required fee collected by PSX is the state’s Documentation Fee. This fee runs between $85 and $199, depending on the state.

Buyer Cost When Paying Cash

If a buyer lives in states like Florida, Texas, California, or Washington and pays cash, PSX follows the same procedures and collects the same fees and taxes as the financing example above.

However, if a buyer lives outside those and other states, PSX collects an “escrow fee” of $199 in addition to the aforementioned fees and taxes to cover the cost of securing the title from the seller and ensuring it is completed correctly. PSX then forwards the title to the buyer, who completes the buyer’s portion, and registers and files it in the state where they live. PSX doesn’t collect any filing, registration fees, or local taxes in escrow transactions. This is left to the buyer to handle when filing the completed title.

Who Should Use the Private Seller Exchange?

Buyers and Sellers desiring a guaranteed secure and safe experience are prime candidates for PSX. In addition, buyers and sellers looking for a low-risk, hassle-free, and quicker transaction also fit the bill. PSX offers peace of mind, a speedy transaction, and decades of peer-to-peer experience.

Related Articles:

• Top Questions You Should Ask a Private Seller
• Buying a Used Car From a Private Seller: Legalities
• Buying a Used Car: Private Seller or Dealer?