If I'm buying a car from a private seller and I need a loan, how does the money get to the seller?

Answered by Car Loans Expert Eric on January 12, 2021

I want to buy a car from a private individual, but I'll need a loan to get it. How will the seller get their cash?

expert avatar


Car Loans Expert

If you take out a private-party auto loan (a loan to buy from a private seller), the money goes to the seller through any number of avenues. Most commonly, the bank will provide you with a cashier’s check made out to the seller. When you go to purchase the car, hand over the check and you’re done.

In other cases, and more specifically if the loan is from the same lender where the seller does their banking, the lender can simply transfer the funds into the seller’s account. Rare instances may also allow for a wire transfer, though these are becoming less and less popular due to the chance of fraud.

Car Loans

Have an insurance question?

Our insurance agents are ready to help you, for free.

Ask your question, it’s 100% free
Thousands of customers saved on average $887/year on their car insurance with Jerry
This app is great, but the customer service is even better! Not to mention convenient! My husband and I got the lowest rate (much lower than the rates I was finding online through my own searches), quickly, and pretty much all through text message! Thank you so much for a hassle free experience👍
Gabriella R.
Find savings (100% Free)
stars4.6/5 Rating on App Store