Originally Posted by
EDS
Congrats!!
The deposit shouldn't be more than $500 - $1000. So, in my mind, the deposit acts as a way to secure the car without taking the risk of sending the entire payment to the seller before you can pick it up. It is sort of already your way to reduce the risk.
Probably the best option is to send the deposit through paypal or venmo using your credit card. This way if the seller rips you off then you can file a dispute with paypal, and/or with your credit card company.
Technically, you could use an escrow service like escrow.com to send the deposit to sell, and then release it from escrow once you buy the car. But, it's unlikely that the seller would agree to that. And, escrow.com is a nightmare to use.
Ultimately there isn't really a way to protect yourself 100% from getting ripped off other than trusting your gut and putting trust in the seller and humankind.