How does an online escrow actually work for a used car purchase?
I keep hearing escrow recommended for buying a car privately, but I don't fully understand the mechanics. Where does my money go, and how does the seller know it's real?
Does the seller see the funds before shipping? And what triggers the release — the delivery, my inspection, or something else?
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asked Feb 17, 2024, 12:47 AM by Jess M.
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You send the purchase funds to the escrow agent, who confirms to the seller that the money is secured. The seller then ships the car. You get an agreed inspection window after delivery, and only when you confirm the car matches the agreement does the agent release the funds to the seller.
The key detail is that the seller never touches the money until your release condition is met. That's what makes both sides comfortable.