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

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?

Answer
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.
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Eric Schad
Answered on Mar 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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