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How do I buy a car from a private seller with a loan?
My experience with car dealerships in the past has been awful. I’m in the market for a car now, but I’d rather work with a private seller than step foot on a car lot. However, I’ve never bought a car from a private seller. How do I buy a car from a private seller if I need a loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Buying a car from a private seller
requires a few more steps, but don’t feel overwhelmed. Make sure to inspect the car, negotiate a price, and shop around for a car loan. By doing these, you should be able to find a quality car at an affordable price without the hassle of the dealership.When you’re buying from a private seller, you often don’t get the warranty that comes with vehicles from the dealership, so you’re going to have to do some work on your own:
- Shop around online to find the car you want
- Get a vehicle history report
- Ask the seller for service records
- Test drive the vehicle
- Take the vehicle to a trusted mechanic for more inspections
- Find the fair market value of the vehicle
Extend your inspection even further by asking the owner a few questions, such as:
- Why are you selling the car?
- Does the car have a lien on it?
- Has the car been in an accident?
- Are you the original owner?
- Are there any recalls on the car?
- Have you had to do any major repairs?
If you’re satisfied with all of these answers, shop around for car loan rates. While not all lenders off private party car loans, credit unions, and banks are a great place to start. Once you have the vehicle information, give it to the lender and wait for approval.
Keep in mind that your lender will require full coverage car insurance throughout the duration of the loan, which can get rather pricey if you don’t shop around. That’s when the Jerry app can help.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers. When you find an excellent rate for your private sale vehicle, Jerry can help you buy your new coverage and even cancel your old policy if necessary. Jerry customers save an average of $879 per year!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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