How do you buy a private-party car with a loan?
What do I need to do to buy a private-party car with a loan? I found a car that I like, but I can’t afford to pay for it all at once.
To buy a private-party car with a loan, you’ll need to find a private-party auto loan.
There are a few places that you can look for this type of loan:
- Large banks: Not all large banks offer private-party loans, but you can sometimes find them at 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: Some online lenders will 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 name, date of birth, mailing 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 the private party car, and begin making payments!
It’s common for lenders to require full coverage car insurance for financed vehicles, so be sure to budget for that. If you want help shopping for the best rates, try using the Jerry app. Jerry compares personalized quotes from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
MORE: What is a car lien?
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