Buying a car privately with a loan is similar to buying a car from a dealership with a loan. You’ll want to:
Note that, from a lender’s standpoint, loans for privately sold cars are riskier than dealership-sold cars. So, your loan may come with a higher interest rate and shorter loan term.
If you have a credit score of 660 or higher, then lenders are likely to approve your loan application. If not, you may need a cosigner with a better score to qualify.
The documents you’ll need when applying for a loan include proof of identity, proof of residence, proof of income, and proof of insurance.
If you’re looking for affordable coverage, you can get car insurance fast with the Jerry
app. Jerry will collect competitive quotes from 50-plus top insurance companies (like Nationwide, Allstate, Safeco, Progressive, and Travelers) so you can get the best deal available. You should compare loan rates too by shopping around with lenders. Apply for preapproval with local and national banks, credit unions, and online lenders.
Once you’re preapproved and have selected a lender, let your coworker know! Then, you two can work on transferring the title
, and you can start enjoying your new ride!