What the Fee Covers
Your escrow fee pays for a neutral party to hold funds, verify conditions, handle documentation, and mediate if something goes wrong. It's a service, not a tax.
Who Usually Pays
Convention varies. In many private vehicle deals the buyer pays the fee, but it's negotiable and sometimes split.
How It's Calculated
Most agents charge a small percentage of the transaction value, often with a minimum. On a $20K car, a one-percent fee is $200 — cheap insurance against a $20K loss.
It's Not an Extra Charge on the Price
Unlike a deposit, the escrow fee is a separate service cost. The purchase price itself still goes to the seller in full once released.
Ask Up Front
Confirm the fee, who pays it, and what's included before you open the escrow. No surprises.