Private Party Car Loans

Buying a new or used car requires the buyer to have enough cash on hand. However, most individuals do not have enough money to buy a decent new or used car. Moreover, people who don’t have a good credit rating will be denied a brand new car loan, unless they have enough money to put down on the loan. In this case, people will turn to buying a used car from a private party instead of a dealer. Purchasing a used car from a private party will require the buyer to have enough cash to make the purchase.

However, in some cases the buyer will not have enough cash on hand to purchase a used car from a private party. Luckily, there are private party car loans that buyers can apply for. Private party car loans are loans designed for those who want to finance a car from a private party, instead of a dealership. There are a number of ways to obtain a private party car loan, and there are plenty of lenders who specialize with this type of car loan that is found online. However, there are few steps that a buyer should consider before applying for a private party car loan.

First off, car buyers can get pre-qualified for a private party car loan before they even find a used car. There are lenders online that make the process extremely simple by approving a borrower for a certain amount of cash to be used for a private car purchase. Filling out an application online only takes a few minutes and the applicant will receive a response that states how much they are approved for. Lenders will provide free quotes that allow borrowers to compare rates between lenders. Borrowers should realize that researching lenders will be the first important step to make when shopping around for private party car loans.

Borrowers should also pay attention to their credit rating when applying for a private party car loan. Many lenders will approve applicants based on their credit rating. In fact, before applying, individuals should obtain a copy of their credit rating in order to determine if there are any mistakes. If there are mistakes on the credit report, the individual should have them removed immediately. Some lenders will not pre-qualify the borrower because the lender will require the borrower to have chosen a used private car.

In some cases, the borrower will have to choose a car first in order to receive a private party car loan. Some private party car loan lenders will require the vehicle's identification number and the title before the borrower received the loan. Other lenders will cut the borrower a check for the amount they qualify for. Another factor to consider when purchasing a used car from a private party is whether or not the seller has paid off their vehicle. If the seller has a lien holder on their car, the title will not be transferred to the borrower.

Instead, paperwork will need to be done to transfer the title of the vehicle from the lien holder of the seller to the new lien holder of the buyer. Private party car loans are designed to help individuals buy used cars from a private party, regardless if the vehicle is paid for or not. The borrower should also consider putting enough money down to increase their chances of being approved for the loan. For example, if a private party used car cost $10,000, the borrower should at least put a down payment of $2,000, which will be 20%. This will help the borrower’s approval process when applying for a private party car loan.