How do I get a loan for a private-party car?

What’s the best place to get a loan for a private-party car? I found a car that I like that’s in my budget, but it’s from a private seller, so I’m not sure how to get a loan for it.

Answer
When you’re shopping for a loan for a private-party car (or a private-party auto loan), there are a few places that you should check:
  • Large banks. You won’t be able to find private-party loans at all large banks, but it’s worth checking around. Some banks that have private-party loan options include PNC, Bank of America, and Regions Bank.
  • Credit unions. Many credit unions offer private-party loan options. Credit unions are known for offering flexible rates and terms on car loans, so this might be a good option if you need to stay within a specific budget.
  • Online. Online lenders will sometimes offer private-party loans. Be sure to check the terms of these types of loans before signing to avoid any extra fees.
Once you find a lender you like, you’ll need to provide a few pieces of information, which might include:
  • Your full name, date of birth, address, and Social Security number
  • Any employment and/or income details
  • A copy of the car’s registration and title
  • A bill of sale
If your lender approves you for the loan, you’ll be able to sign the contract, purchase your car, and begin making payments!
Some lenders will require you to carry full coverage car insurance for financed vehicles, so try using the Jerry app to help you find the lowest rates. Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free.
Liz Jenson
Answered on Dec 01, 2021
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