Services
Insurance
Loans
Repairs
Advice
About

How does a car loan work when I'm buying from a private seller via Craigslist?

I found an awesome deal on Craigslist for a used car, but I still need some help financing it. How can I get a car loan to buy a car off Craigslist?

avatar
Johnny Puckett · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
When you're
buying a vehicle from a private seller
, you'll need to secure a
car loan
from a private-party lender instead of a dealership that offers in-house financing.
Here are a few great places to start:
There are a few important things to keep in mind:
  • Private-party loans are secure loans, which means that your lender can
    repossess your car
    if you default on payments
  • You may need to consider a
    personal loan
    if you’re having trouble getting approved for a private-party loan
  • Personal loans come with
    higher interest rates
    because they are unsecure—so your lender assumes a lot more risk if you stop making your payments
View full answer 
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.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings