What Is a Private-Party Auto Loan?
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Private-Party Auto Loan Defined
Where Do You Find an Auto Loan To Finance a Private Car Sale?
Lightstream PNC Bank First Credit Union USAA Bank
Private Party Auto Loans vs Typical Auto Loans
Factors That May Affect the Interest Rate of a Private Auto Loan
Your credit score Other financial information, such as your income and employment history The age of the vehicle The mileage of the vehicle The length of the term
Rates & Terms
Pros and Cons of Private Party Auto Loans
Advantages of Private Party Auto Loans
They provide would-be car buyers with private sale auto loan financing Can help you buy a used car at a bargain price Your interest rate may be lower than unsecured personal loan rates Can help you build credit
Disadvantages of Private Party Auto Loans
Lenders may require that you find the car you want to buy before applying for the private sale auto loan Your interest rate may be higher than a typical auto loan An auto loan for private seller purchases cannot be used to buy a new car from a dealer The lender may not help you in the paperwork process of transferring the car title and registration into your name
How Do You Qualify for a Private-Party Auto Loan?
How Do You Apply for Private-Party Auto Loans?
Your name Date of birth Address Social Security number Year Mileage The bill of sale or buyer’s order detailing the terms of the purchase agreement A copy of the vehicle’s title and registration Written payoff quote from the seller’s lender, if the car is still under lien on their side
Should You Use a Private-Party Auto Loan to Refinance Your Car?
Are There Private Party Auto Loans for Bad Credit?
Alternatives to Private Party Auto Loans
Indirect financing through a dealership Borrowing money from friends or family to buy a car Using a personal loan to buy a car Buying the vehicle outright with an all-cash purchase Getting a short-term car lease
Frequently Asked Questions
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