The absolute minimum you can put down when selling a car privately is $0. You are not required to ask for a down payment at all. The transaction is a straightforward exchange of the vehicle's title for the agreed-upon full sale price. However, requesting a non-refundable deposit, often called "earnest money," is a critical best practice to protect yourself from no-show buyers. It secures the sale while the buyer arranges financing or conducts a pre-purchase inspection.
A deposit demonstrates the buyer's serious intent. Without it, a buyer could verbally agree to a price, then simply not return, causing you to lose other potential offers. A typical deposit ranges from $200 to $500 or about 5-10% of the sale price, held in cash. This amount should be substantial enough to discourage the buyer from walking away but not so high that it becomes a barrier to the sale.
The process is simple. Once you and the buyer agree on a price and a deposit amount, provide a signed receipt stating the vehicle details, sale price, deposit amount, and the date by which the full transaction will be completed. Clearly state on the receipt that the deposit is non-refundable if the buyer fails to complete the purchase. This receipt protects both parties.
| Common Deposit Amounts for Used Cars (U.S. Market) | Typical Sale Price Range | Rationale |
|---|
| $100 - $200 | Under $3,000 | Secures interest without being a significant financial hurdle for the buyer. |
| $250 - $500 | $3,000 - $15,000 | A common "sweet spot" that shows serious commitment. |
| $500 - $1,000 | $15,000 - $30,000 | Proportional to the higher value of the vehicle. |
| 5% - 10% of Sale Price | Over $30,000 | A percentage-based approach for high-value transactions. |
Always insist on a cash deposit. Personal checks can bounce, and digital payments like Venmo can potentially be reversed. The final payment should also be in a secure form: a cashier's check from a local bank (which you can verify by calling the bank) or cash for the remaining balance.
