Can a car loan from a bank be used to buy a vehicle from a private party?
I recently got pre-approved for a car loan for $10,000. I want to save money by purchasing from a private seller. Can I use a bank loan to pay for a car from a private seller?
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Answered on Apr 27, 2021
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“Many banks and credit unions will offer private-party auto loans without a hitch. The process is very similar to buying a vehicle from a dealership.
Since you have pre-approval, the next step is to find the car you want. You’ll want to ask all the right questions, such as:
- Why are you selling the vehicle?
- Does the vehicle have any problems?
- Can I take it to my mechanic?
- Do you have a Carfax report?
- Do you own the car outright?
Once you have the answers to these questions and you’re satisfied, take the VIN and other vehicle information to your lender. After reviewing the info, they’ll either approve or deny the loan.”
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