Quick Facts About Facebook Marketplace for Cars
- Facebook Marketplace is an online platform to buy and sell various items, including vehicles.
- Its limited policies and protections require buyers and sellers to handle transactions independently.
- The decision to buy from a private seller on platforms like Facebook Marketplace or Autotrader’s Private Seller Exchange depends on individual preferences and needs.
Facebook Marketplace is a popular hub for buying and selling goods online. Since many shoppers already have an active Facebook account, the interface might be easy to navigate, but is it a legit place to buy and sell cars? If you’re looking for your next vehicle or plan to list one for sale soon, here’s what you should know.
- What Is Facebook Car Marketplace?
- Autotrader Private Seller Exchange vs. Facebook Marketplace
- How Does Autotrader Private Seller Exchange Work?
- Should You Buy a Car From a Private Seller?
What Is Facebook Car Marketplace?
Hosted on the Facebook social media network, Facebook Marketplace is an online destination for various e-commerce transactions. The site has categories for many types of goods, including electronics, home goods, property rentals, and vehicles. You can access the marketplace by navigating directly to the webpage or using its mobile app.
Sellers can create detailed listings for their cars, providing key details about the price, condition, driving history, and more. As a buyer, you can contact the sellers directly through Facebook’s messaging interface. From there, you’ll arrange a meeting, schedule a test drive, and proceed with purchase negotiations.
Facebook Marketplace policies and features can change frequently. Be sure to review its terms and conditions before using the platform so you understand the guidelines and any protections.
Autotrader Private Seller Exchange vs. Facebook Marketplace
Private Seller Exchange (PSX) is a trusted online marketplace for listing and purchasing used vehicles. The dynamic user experience makes it easier for buyers and sellers to handle transactions with little-to-no hassle. The exchange gives protections for buyers and sellers while providing quality assurance measures to help both parties feel secure:
- Identity verification
- Secure messaging
- Vehicle history reports
- Presale inspections
- Customer support
- Clean title transfer
Car Selling
Sellers can list cars and other items for free on Facebook Marketplace. After reaching a purchase agreement, you can broker the transaction via third-party payment apps or in person with cash. While the platform has purchase protection for many categories, these policies do not cover vehicles.
Alternatively, PSX charges an initial listing fee of $49 plus a $99 service charge on the final transaction. If the sale price exceeds $10,000, sellers pay 0.99% of the total instead of the $99. These listing and selling fees help eliminate scammers and ensure shoppers always browse legitimate listings. Each Private Seller Exchange sale has an umbrella of protection to secure transactions.
RELATED: How to Exchange Funds in Private Car Sales
Car Buying
To make a purchase on Facebook Marketplace, you must contact the private seller through the listing and arrange payment outside the platform. Limited protections may be available depending on your payment method (cash, check, PayPal, Venmo, etc.). If fraud or other issues arise, it may be difficult to dispute the transaction.
When using Autotrader’s Private Seller Exchange, PSX is the payment mediator, and the platform processes and protects the transfer of funds. Sellers can also apply for financing directly through the website.
MORE: Can You Buy a Car With a Credit Card?
Safety
Any Facebook user can submit a vehicle listing on Facebook Marketplace. There are limited authentication requirements for account holders. On PSX, each seller goes through a verification process to confirm their identity. Every vehicle is also verified via a safety assessment and must come with a clean title. PSX also provides a free vehicle history report to interested buyers.
Unlike Facebook Marketplace consumers, buyers and sellers arrange test drives through the PSX platform. Buyers must submit their credentials and log the time and location of the test drive. The verification helps keep everyone safe, and each part of the process is documented.
Scam Listings
Use caution when reviewing vehicle listings on Facebook Marketplace. Fraudulent listings are more common when there are no verification standards in place. Be skeptical of low prices and avoid being tempted by “too good to be true” listings. For example, a current model year car in excellent condition with low miles selling for a few thousand dollars is likely a fake listing. These kinds of scams are designed to attract unsuspecting buyers.
Scammers often request advance payment, offer little information about the vehicle’s history, or have few photos available for review. You must be vigilant. Thoroughly vet each listing and only use secure payment methods. Meet during the day in a public place if you’re scheduling a test drive.
Title Exchange
You have to handle the car title transfer when purchasing through Facebook Marketplace. If you buy a vehicle through the Private Seller Exchange, PSX facilitates the title transfer and vehicle registration. This feature saves you time and makes the car-buying process flow more smoothly.
Money Transferring
As mentioned above, Facebook Marketplace does not handle payment transactions. It’s the buyer’s and seller’s responsibility to ensure the funds are safely exchanged with a clear purchase receipt and supporting documents.
When you buy a car on PSX, the funds go into an escrow account. Once both parties sign the required documents, the money is released to the seller.
Payment Options
Unless sellers on Facebook Marketplace have a Shops business account, there is no official way to broker sales on the site. Buyers can request to pay via various third-party payment applications. However, the seller ultimately decides how to accept the funds.
You have three ways to pay for a vehicle on Private Seller Exchange:
- PSX financing
- Cash via wire transfer
- Bank financing
Learn more from PSX frequently asked questions.
Filing Paperwork
Facebook Marketplace does not help process the required documents after you purchase a vehicle on the platform. The parties must sign all paperwork and submit it to the appropriate offices to finalize the sale.
PSX handles almost all paperwork on the buyer’s behalf. However, since each state has its own rules and regulations, there may be times when PSX cannot process all paperwork. In these instances, PSX will still secure a clean title for you to submit with payment at your local DMV.
How Does Autotrader Private Seller Exchange Work?
Private Seller Exchange offers secure and transparent peer-to-peer car sales. Sellers list their vehicles online via the PSX portal and buyers can browse the extensive selection of available cars. From there, shoppers can reach out to sellers via a secure messaging portal and arrange a test drive, negotiate pricing, and finalize the deal.
After PSX completes its security verification process, the buyer submits payment, and both parties digitally sign all the required paperwork. Once the buyer collects their new vehicle, PSX releases funds to the seller.
Should You Buy a Car from a Private Seller?
Buying a car from an individual seller versus a dealership is a personal choice that depends on your circumstances and comfort level. Here are some reasons to choose a private marketplace.
- Cost Savings: There’s no brick-and-mortar overhead to account for when purchasing from a private seller. This means their prices may be much lower than what you’ll see at a traditional dealership or used car lot.
- Negotiation Opportunities: The sale price may be more flexible with a private seller than a salesperson working for a commission.
- Ownership History: For used cars, dealership salesmen may have a limited understanding of the vehicle’s driving history. By communicating directly with the previous owner, you can learn about all issues or repairs directly from the person who last drove the car.
- Selection: Maybe you’re hunting for a specific make and model. If it’s an older car, it might be more difficult to find at a local dealership. Online private marketplaces often have a more diverse range of cars available.
Read Related Articles:
- Reasons Why Keeping Service Records Helps With Car Value
- Is There a Used Car Lemon Law?
- Buying a Used Car Online: How to Find the Perfect Vehicle
Editor’s Note: This article has been updated since its publication. Chantel Wakefield contributed to this report.
