Private Auto Loans for Used Cars

When purchasing a car from a private seller instead of a dealership, getting a private auto loan can be more beneficial to you. Instead of going to a car dealership to purchase your car, you simply go to a private party and purchase the car with the money you have gotten from a private auto loan. The fees are usually better, and the cost lower than that at a bank or dealership.

If you know the owner of the car and you trust them, you could end up with a much better deal than you would get at a dealership. However, if you are not familiar with the owner, then it could get a little sticky if something goes wrong with the car. Your best bet is to always have your mechanic look at the car before you decide to buy.

But when getting a loan, you will be looking at a lower rate for the auto loan than if you went to a dealer – but you will be looking higher than if it was a new car. Used cars always have higher interest rates than new cars, only because the underwriters are taking a chance that the car won’t fall apart. The rates will also change depending on your credit history, but you would get that at a dealer as well.

Loan terms are usually less than that you would be looking at if you had purchased a new car and leasing will not be an option as a rule. There are exceptions to every rule, but financing will usually be limited to 48 months, as compared to the 72 you can get with new. However, used or new, you want the lowest term you can afford.

You do not usually need to put down a down payment for private loans, but it is good to do so if you can. You will also have to pay title, taxes, etc. out of your pocket, as you cannot finance those with a used car private auto loan.




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