Wednesday, October 7, 2015

Private Party Car Purchase - Caution is the Key

Dealerships frauds such as adding unnecessary fees to the invoice and selling flood-damaged cars have compelled car buyers to opt for private party auto purchase. It is a quick and economical way of buying a car. It is becoming popular among Americans because of the following reasons:

>> No aggressive marketing,
>> No extravagant commission,
>> No processing fee,
>> No dealer preparation charges,
>> No advertising fee, etc.

The benefits of choosing private party car purchase are many. But, before jumping on the bandwagon, you must be cautious and make sure that you do not fall prey to the scams that are common while buying a used car from a private party.

"The Out of the Country" Scam

The seller says that the car is currently out of the country but he/she will ship it once the payment comes through. After receiving the money, the seller vanishes and the car is never shipped.

"The Escrow Service" Scam

The sellers ask you to use an online escrow service for safety purposes. However, the online website turns out to be a fake one.

"The Partial Payment" Scam

The seller demands a partial payment before shipping the car. You pay the money thinking that your car will be here any day only to realize that it was a scam.

"The Stolen Car" Scam

Before buying a car, it is important to scrutinize the car documents. If you fall for a stolen car and agree to buy it from the seller, there are chances that the police may seize the vehicle from you.

"The Odometer" Scam

The odometer shows the number of miles the car has driven. Sellers change the odometer and reduce the number of miles because a lesser driven car fetches a higher price.

How to make a Safe Private Party Auto Purchase?

1. Avoid buying cars from total strangers. If you buy a used car from your neighbor, family member, friend or acquaintance, there will be lesser chances of fraud.

2. If you opt for an online private party auto purchase, contact the seller via listed phone number. Remember that fraudulent sellers do not give their real numbers and insist on contacting via e-mail only.

3. Do not share your confidential banking information with any seller. Also, do not send money through wire funds because once the funds are sent through a wire transfer, they cannot be recovered.

4. Verify all the documents related to the ownership of the car. If there is a lien on the car, you must know every detail about it. It is better to contact the lien-holder for discussing the process of obtaining the car title. Also, ask your trusted mechanic to inspect the car.

Remember that when it comes to making a private party auto purchase, caution is the key. You must pay attention to each and every detail and not just focus on the low price of the car. It will help you in making a successful car purchase.

All the best for buying a perfect car!

Friday, November 21, 2014

Private Party Auto Loans - The Most Affordable Way of buying a Used Car

Most car buyers opt for private party car purchase because they are looking for an affordable deal. If you have chosen an inexpensive car from an individual seller, make the deal cheaper with Private Party Auto Loans.

Why choose Private Party Auto Loans? 
  • Easy Used Car Buying
  • Lowest Rates
  • Bad Credit Score is okay
  • Past Bankruptcy is allowed
  • No obligation Loan Quotes
These are not the only benefits of Private Party Auto Loans. Apply now and get up-to 4 loan offers.

Monday, November 17, 2014

Useful Tips for making Private Party Car Purchase Affordable

If you are thinking of buying a reliable and affordable car, don't just concentrate on new and used car dealers. You can achieve success in buying a car by choosing one more alternative called "Private Party Car Purchase."

In the process of private party purchase, there are two parties involved:

1. Private Seller - He/she is a person just like you who wants to sell his/her car without contacting a dealer.

2. Private Buyer - If you want to buy a car from a private seller instead of a dealer, you qualify as a private buyer.

Why choose Private Party Car Purchase?

Every used car has four values:

1. Retail Value ( Cost of Used Car at the Dealership Lot)

2. Trade-in Value ( Value offered by the Dealer that will be deducted from the Price of your New Vehicle)

3. CPO Value ( Cost of a Used Car if its Certified and includes Extended Warranty)

4. Private Party Value ( Value at which a Private Seller is willing to sell the Car)

Usually, the Private Party Value of a car is lower than its other values. It is because a private seller doesn't have to incur operating costs and marketing costs that a dealer has to incur in order to sell his car. Also, the private seller is looking to sell the car quickly which means he/she will be more flexible in negotiation than a dealer.

Useful Tips for Private Party Car Purchase

Most car buyers shy away from buying a car from a private seller because they are afraid of choosing the wrong car. Also, there is fear of not finding the perfect car loan deal. But don't worry. If you want to become successful in obtaining a good deal, here are few tips to help you:

Money Matters

When you buy a car, you have to assume a financial responsibility. You must know the amount of monthly payments that will be paid easily by you. For that, you must calculate your Net Monthly Expendable Amount (Total Monthly Income - Totally Monthly Expenses - Savings). It will help you in ascertaining your desirable monthly payment amount.

Details about Documents

Cars are expensive; even those purchased from private sellers. So, you will need a loan to buy a car. Keep all your documents ready like:

a. Your Current Financial Statements and Bank Statements

b. Your Previous Loan and Mortgage Records

c. Income and Employment Verification Proof

d. Receipts of Utility Bills

Car Type

You must know what kind of car you are looking to buy. If you want to buy a convertible, there is no point in meeting private sellers with a station wagon or a sports sedan.

Car History

It is important to know everything about the car. Learn if there have been any accident or damage. Also, ask your trusted mechanic to check the car thoroughly. It will help you in eliminating lemons.

Loan Requirements

Although car loan criteria vary from one lending agency to another, there are few requirements that remain same like:

a. The car should not be driven for more than 100,000 miles.

b. The car should be 8 years old or newer.

So, whenever you choose a car, ensure that it meets the above mentioned requirements.

Private Party Car Loans

You can apply for a private party loan before or after choosing a car. If you apply for pre-approved private seller auto loan program, the lender will ascertain your financial stability and provide you with a pre-approved loan amount.

Remember to choose an auto financing company, a lender or a bank that provides private party car loan because there is no point in applying with lending agencies that don't cater to your requirements.

So, these are the simple, but highly useful tips for making a private party car purchase. Remember them to become a successful car buyer.

All the Best!

Monday, June 9, 2014

Private Party Auto Loans – The Joy of Car Buying is for everyone

Private party auto purchase is affordable because dealer commission is not involved. You can make it more affordable with Private Party Auto Loans. The company provides auto financing programs at low rates. It is for all those car buyers who detest car buying from dealers.

The company doesn’t mind if you have bad credit on your credit report or have a bankruptcy in the past. These things won’t create any problem if you ensure regular monthly payments. Simply show your current pay slips to the company’s representative and get approved.

This is a perfect opportunity of buying a car from your friend, colleague or your neighbor with Private Party Auto Loans. Choose the car and apply on the website for quick approval.

Monday, April 28, 2014

Why should you choose Private Party Auto Purchase? – Clear Benefits

In today's economy, consumers want value. Everyone wants to get more value for lesser price. If you are a car shopper, you definitely want a reliable yet affordable car. Don’t think a dealer is the only option for getting a car. You can buy a used car from a friend, relative, online websites, advertisements, car auctions, etc. This is called private party car purchase.

As auto owners don’t have to pay for salesmen salaries and advertising overheads, they charge lesser money than dealers. So, buying from a private party car seller is beneficial for your wallet. Make it even more profitable with Private Party Auto Loans. Don’t fret over bad credit because the company provides quick approval to people with less than perfect credit score. Sounds a great chance to buy a car, doesn’t it?

So, don’t let this opportunity pass by. Apply now and get ready to avail the most advantageous loan deal of your life.

Tuesday, April 22, 2014

Most Crucial Factors in a Private Party Auto Loan

One of the blog followers, Kimberly, sent in her doubts regarding private party auto purchase. She wanted help in buying a car from Here’s how Private Party Auto Loans helped her.

I live in Rhode Island. I was searching for a reliable Honda Civic. I finally found one. But, the seller is not a dealer. He is an individual from New York.  I saw the listing on If I buy from him, what kind of things should I concentrate on while buying and applying for car loan? 

- Kimberly, Barrington, RI.

When you buy a car from an individual instead of a dealer, you are making a private party auto purchase. It includes purchase through an online auction, classifieds, your neighbor or relative, etc.  There are no dealer commission/fees in such transactions and so, you end up saving more.

When you are buying a car from a person, you should maintain the same level of alertness that you maintain while buying at a dealership. Check the condition of tires, headlights and tail lights. Burn marks, stains, and tears in the fabric of the car’s interior can also tell you a lot about it.

Make sure that you have access to all paperwork like Safety Inspection Certificates and Certificate of Title.  You must go through the Vehicle History Report for details regarding the car title.

While opting for auto loans, choose a lender that provides private party financing. Don’t get confused if the lender uses other names like person to person auto loans, individual seller auto loans, non-dealer option,etc.

When you apply with a lender, you will have to provide vehicle information like the car’s make and model, manufacturing year, and the current lien holder (if any). So, be ready with it.

These are the points which you should focus on while making a private party car purchase.  It will help you in getting a better deal.

Private Party Auto Loans ensures that you get the best auto financing program. With the company’s affordable car loan rates, you get the opportunity to save more. Apply now for quick approval.

Friday, November 15, 2013

Instant Approval on Private Party Auto Loans – Easy Car Buying at Low Rates

The process of getting low rate private party used car financing is as similar as getting any other car loan. Only thing that you need to keep in mind is to choose the “Private Party” option while submitting the loan request. As soon as you are approved, the company’s auto loan specialist will contact you. Simple, isn’t it? So, don’t wait. Apply now to get the best rates on private seller auto loans.

Forget the troubles of bad credit history and get ready to bring home a reliable used car with Private Party Auto Loans. This car loan program offers competitive rates. Avoid long waiting lines and stringent approval criteria at the lender’s office. Apply now on the secure website and get approved from the best online auto financing company.

Tuesday, June 11, 2013

Crash Course in getting Approval on Private Party Auto Loans

Car enthusiasts keep buying new cars almost every year. This means if you buy a car from them, it won’t be very old. Plus, buying an automobile from an individual is better than a dealer because you get car information directly from the horse’s mouth.

If you are interested in buying your next car from a private seller, then you will need private party auto loans. The car financing program gives freedom of buying a car from a person. Read this expansive article and get ready to own a used car in an instant.

Know your Money inside out

Before taking any financial decision, you must understand your financial situation. Most private party auto lenders require you to earn at least two thousand dollars every month. They even recommend no open bankruptcy. This is because they want you to make regular payments without any risk. This shows affordability is very important to lenders. So, it is essential to calculate your regular income sources and expenses. Do consider any additional income/expense in the coming months. It will help you to analyze your situation in a better way.

Opt for a car loan only when you are hundred percent sure of managing it.

Are you eligible for Private Party Auto Loans?

Although every lender has different car loan approval criteria, these are the most common set of requirements for getting approval on private party auto loans:

1. You must have a valid SSN.

2. Time at Residence – You must be living at your current home for more than six months. Also, you must have resided at your previous residence for at least six months.

3. Time at Job – You must be employed at your current job for at least six months. Minimum of six month criteria applies for your previous job as well.

Search for the Perfect Car

Now, this may take a while but you shouldn’t lose hope. Keep searching for the best automobile and rest only when you have found the treasure. There are many ways of finding a private seller. Ask your friend if he is interested in selling his car. Anyone from your office might be willing to sell his automobile. So, don’t forget to use that option as well. You can also use the web to search for used cars with non-dealer option.

Vehicle Requirements

When you see a car, don’t forget to evaluate it from the eyes of the lender. Here are few basic vehicle requirements for getting approval on private party auto loans:

1. The Odometer Statement should not show more than 80,000 miles.

2. The car should not be older than 6 years.

3. The minimum loan amount should be $7,500.

Searching for the Lender

Now, you just need to find the perfect lender who can offer you private party auto loans. You can take help of the internet. Remember to check the reliability of lenders. Also, make sure that you consider the loan quotes on several aspects like interest rates, APR, payment schedule, penalties, fees, etc. Choose the auto financing program that fits your requirements.

And, that’s how you can get affordable private party car loans for next your car purchase.

Wednesday, April 11, 2012

Private Party Auto Loans - Buying A Used Car from Private Seller

What’s that one dreadful thing when it comes to getting a car? Most Americans will answer “dealing with the dealer”. Yes, it is so true. We have heard stories about dubious dealers who have conned someone or the other in our social circle. But, we still walk down to the dealership lot half-hearted and full of doubts. You may not know but there is one more option of buying cars. Welcome to the world of private party (non–dealer) car purchase where you don’t have to worry about a fraudulent dealer and his deceitful methods.

Most people are unaware of this opportunity and think that private party sales are risky. Once you completely understand person to person car sale, you will know that the reality is absolutely different.

What Is A Private Party Auto Sale?

Where buyer meets the seller

When you buy or sell your car to an individual without the dealer in picture, it constitutes a private party sale. When you buy a car from an individual, you don’t have to haggle with a dealer. You can meet the seller in person and get all the information from the horse’s mouth.

What Are The Advantages Of Buying A Car From A Private Party?

1. As mentioned earlier, you get first-hand information from the seller. There is no dealer to fabricate the vehicle information.

2. No high pressure car-price negotiation.

3. No dealership commission means lesser price.

How to Make a Perfect Person To Person Car Purchase?

Make sure it is no junk

When you buy a used car, you need to check it properly. You certainly don’t want to end up with a lemon or a clunker. Don’t go for a very old car because most State Lemon Laws don’t cover them. So, while buying a car from an individual seller, follow these important guidelines -

1. Get the car’s VIN (Vehicle Identification Number) and run a Vehicle History Report. It will let you know if the car was ever salvaged or flooded. The report will be helpful in convincing your lender that the car is not junk.

2. You must also check the car’s title. Most of the times, it will have a lien on it. If the same is with your car, then ask the seller to arrange a meeting with his lender (seller’s lien holder). Discuss at length the conditions and the duration in which the title will be transferred to you. It is always good to talk this out in advance.

3. Get the Odometer Disclosure Statement from the seller. It will have the exact number of miles that the vehicle has been driven. Most lenders insist on getting one from the seller.

4. Ask your trusted mechanic to inspect the car.

How to Get a Private Party Car Loan?

A private party auto lender takes risk in offering auto financing options because there is no additional dealer’s warranty. Also, the vehicle is not a certified one. So, lenders want you to fulfill their criteria.

Here are the requirements of private seller auto loans -

1. Your age should be at least 18 years old. If you are getting a joint loan, then at least one of the applicants should be 18.

2. A Valid SSN is mandatory.

3. Your gross monthly income should at least be $2,000. A recent pay stub or IT returns (if self-employed) can be used as a proof.

4. Your employment term at the current and the last job should be more than six months.

5. You must be staying for at least six months at your current residence. Utility bills and rent receipt can be used to prove the term.

6. No open bankruptcy.

7. The vehicle should not have been driven for more than 80,000 miles nor should be older than six years.

All these requirements are pretty standard for a car loan and nothing out of the blue. Private party car loans are easy to obtain. There are quick and simple because of no dealership is involved. With several lenders offering private party loan, it is easier to buy a car and fulfill your dream.

Wednesday, September 14, 2011

Buy a Used Car with the Help of Private Party Auto Loans

The car has become... an article of dress without which we feel uncertain, unclad, and incomplete. - Marshall McLuhan

Cars are undeniably an important part of the American culture! Every person needs a car of his own. But can everyone really afford a car? Sadly, the answer is no.

The auto industry has suffered the most in the current economic crisis. Lenders have become more rigid in giving out loans. Tighter lending norms, large number of defaults and bad credit scores is the harsh reality. But all these problems have given a new breathing space to the private party auto lenders.

Private party lending is very useful when an individual buys a car from another and no dealer is involved.

Let me give you an example.

You decide to buy a car from your friend, family, or anyone off the Craigslist or eBay. Now you may not have enough money to buy a car on your own. So, the only option left with you is availing auto loans.

Getting approval of auto loans isn't easy, is it?

Lenders want to have nothing but an excellent credit score. They won't even touch the application if it doesn't mention a pristine credit history. They will not trust a private sale.

Amidst all the clouds of rejection and despair, private party auto loans are a silver lining.

The loan rates are obviously a tad higher because of the higher risk of default involved. But the great thing is you don't have to deal with sly salesmen and devious dealers. You also save on the commission which was supposed to go straight in the dealer's pocket.

There are a few private party lenders who may not even ask for a down payment. But it is always advisable to put down 20 % of the amount. It will definitely benefit you in availing private party car loans at lower interest rates.

Know Your Onions

Your credit score is of prime importance. Your credit score and the loan approval chances are almost joined at the hip. So get a free credit report and ensure that your information is 100 % accurate.

Regular payments are a must for every loan. So, it is important that you decide on a budget. You must accurately calculate your income and expenses and estimate how much you can afford to pay.

Once you are through this, get first- hand information about the car. You can easily talk to the current owner about car history. You will be able to get all the information about previous accidents, damages and even minor blips.

Trust None, but Facts

Even though the owner (your family/friend) told you all about the car, it is always better to check the facts twice. Several websites will help you get the Vehicle History Report. You only need to have car's VIN (Vehicle Identification Number) for this. This will make you more confident about your decision.

REQUIREMENT for Private Party Auto Loans
>> You must be at least 18 years old
>> You must have a Valid SSN
>> Most lenders want you to earn at least $418 per week or $21,736 annually
>> You should be with your current employer for at least six months
>> You should be living at your current residence for at least six months
>> No bankruptcies and foreclosure

Where Can You Find Private Party Lenders?

Well, several financial institutions offer private party auto loans. But, internet is the easiest and quickest way to find it. Many websites offer you to generate free quotes and also give an option to compare them. With increasing number of such websites, you can easily get competitive quotes.

When you take the online road, it is important to do a thorough research.

Internet is full of swindlers and tricksters trying to steal your information. So you must only deal with reputed websites. You must be ensured about the company's credibility. Google the company's name and try to know more about it.

To ensure safety, share your information with websites that have a secured connection. Usually HTTPS in the URL and a security certificate on the website will do the job.

Once you are through it, apply by filling up the application form. If the website doesn't provide with an online application form, seek quotes through e-mail.

It is important to know that any false information can ruin all your chances of getting the loan. So, share correct information only.

When you avail private party loans, the lender might be interested in some requirements such as the make and model, mileage, maintenance, car insurance policy, etc.

As you fill the application, it is sent to local lenders of your area. The lenders compete for your application and this is how you get the best quote.

Don't sign the agreement without comparing quotes. Know everything about the loan terms. Compare not only quotes, but also the pros and cons associated with every quote. Only when you compare, you will have the utmost satisfaction of making a favorable deal.

Private party lending is an affordable option of buying a used car. It helps you to buy a GOOD car without any dealer intervention.

So, what are you waiting for? Avail a private party auto loan and drive your very own car.

Best of luck!

Wednesday, August 24, 2011

How to Obtain Low Rates on Person to Person Auto Loan?

A vehicle has become an important commodity in the market and a necessity for all the individuals in the country. It is tough to use the public transport to reach the office premises. The peak hour traffic will be hectic and life becomes dull. Do not allow the external pressure to have serious impacts on your life. How good it will be to have your own car and drive to all the desired week end vacations? How good a student will feel to have his/her own car to go for a trip with the friends? However, the current scenario is totally upside down and a common man can not get an auto loan so easily from any of the leading financial institutions.

The practice of borrowing auto loans for private party purchase has become so common and it happens in a hassle free manner. Thanks to the technology with which people are able to get the amount in a matter of minutes if all the documents are verified accurately. People need not roam the places in search of a lender. There are umpteen numbers of private party car lenders whose information can be taken from the internet. It is important to choose the right kind of auto lender to get a low rate private party car financing. Here are certain ways on how to get lower rates on person to person car loans.

With the increase in competition in the auto industry both online and offline, there are huge numbers of person to person car loans offered. This competition gives an advantage to the potential borrowers to get less interest rate when analyzed properly. The customer has to do a proper ground work in knowing the maximum information about the private party lender and the car price before taking the loan.

Second way to reduce the interest loan is to put a sizable amount of down payment. Larger the amount is and larger the money you save on the interest rates. The rates can be lowered depending on the amount of money down.

It is highly recommended to go for a shorter tenure of the loan. By this way, you can save huge amount of money paid as interest. However, there will be additional charges recovered if the loan is extended due to any reason.

It is important to choose a brand of car that has got better resale value in the market. Do not go for the brand of cars that has got the least of resale value. The amount of risk involved while financing for better brand cars is less in most of the cases. This will reduce the rate of interest substantially.

The borrowers should make sure that the car has got all the auto insurance coverage, proper transfer of title and other documents properly. This keeps the car in the most secured way.

Tuesday, August 23, 2011

Choosing Between Auto Dealership Financing and Private Party Auto Loans

Every individual would like to drive his/her own car. Buying a car might be a lifetime goal for some and for some might be a passion. However, the practicality is that not everyone can fund the purchase of the dream vehicle. The recent economic turmoil has added fuel to the fire and it has left many people to be financially bankrupted. The recent developments prove to be a good sign for recovery and the automobile industry has started picking up its sales. Most of the people would like to take a loan to buy their dream car. A lot of people cannot afford a new car and so think for opting for an economical used car. Choosing between buying a used car through private party auto loans and auto dealership financing needs a lot of ground work research and analysis. Lets compare the deal here.

Advantages of Private Party Car Loans:

Private party car loans can be obtained at a faster rate when compared with others. A normal underwriting process will take place for a standard vehicle loan. The loan will be sanctioned within hours of time with less amount of paper work.

Private party auto lenders offer flexible terms for the loans and you will not have a tough time to negotiate the terms. You can get a highly customized program depending upon your financial requirements.

The loan terms can be extended if required at the end for a higher rate of interest.

Private party auto lenders do not demand a huge lump sum amount which has to be paid as upfront fee.

There no specific requirement needed to qualify your car while applying for individual seller car loan. Just a few document and you can get a private party car loan.

Disadvantages of dealership car financing:

Credit score scams: You would have possibly come up with a fair amount of credit scores after being toiled and moiled. This score could be a better score to get the deal sanctioned at the normal rates. However, you will often envisaging a situation where a senior officer walks to you saying that according to their calculation, the credit score is too low for the loan to be sanctioned. They would force you to take the loan at a higher rate of interest which is considerable only for the valuable customers.

Dealership financing is just yet another product that is sold by the dealers. They always want to make profit out of their business and do not fell scapegoats for their greed. Do not accept any deals that has got less than 2% APR as this is highly impossible except a few occasions.

The car dealership financing can be looked as a one stop shop for all your needs. However, you must remember the fact that you cannot customize your needs and have to shell out extra money for unnecessary expenditure. The buyer must decide the kind of financing depending on the pros and cons of the lenders and loans.

Private Party Car Loans For a Non Dealer Option

The recent economic turmoil has left millions of people with shattered dreams of owning a car. There are huge numbers of people who are left with no option then to use public transport when it comes to the repayment of their auto loans. The auto loans are considered to be collateral and the dealers have got sole rights to take back the car if the loan is not repaid. The automobile industry has thus seen a down turn in the economy of the country. The bounce back in the economy is very much dependent on the recovery of the automobile industry. The car manufacturers with the help of government have however created new opportunities for both the borrowers and lending institutes.

The dealers were keen to fund the new cars and not the used ones in the past and so not many people were able to finance their private purchase vehicle. However, these private party auto lenders have become the prominent figures in the society after the turmoil. The lenders fixed the amount of loan depending on the invoice produced by the customer. The lenders had to verify the authentication of the documents and the commercial context under which the transaction took place in order to be assured of the amount given away. This private party used car loans are offered at a higher interest rate as the risk involved is higher in this case. However, with a steep rise in the competition in the market between the lenders you can get reasonable rates.

The borrowers can find a plethora of private party lenders who are ready to relax the norms to give away loans. However, the interest rate is still high in these cases when compared to the normal dealers. These private party auto loan lenders works based upon 2 criteria.

1. The credit worthiness of the borrower
2. The value of the car in the market.

The private party car loans are highly preferred by the people due to the negotiation power on the price of a car (as you know the person from whom you are buying) and its cost-effectiveness. The customers just have to produce the proper evaluation of the asset with the insurance coverage for the vehicle.

The under privileged people of the society who have always been in the back burner seek the assistance of private party auto lenders to drive their dream cars. A person who wants to prefer a non dealer option in buying an economical car with much hassle of negotiating at a dealer can stick to this method of obtaining the car loans. However, they need to remember that the loans might have higher interest rates when compared to the traditional loans. Private party car loans are always considered the best alternative provided if repaid without any defaults.

Financing A Used Car from Private Seller at Affordable Payments

Every single individual would like to have the smell of a new car in their motor room. There are people who can buy the brand new cars according to their desire and there are some people those who are not able to fulfill their dreams. It is their poor financial status which prevents them from buying a new car. If you are among them then not to worry with financing option available in market. You can get a financing for a used car from private seller at affordable payments.

Traditionally, people used to purchase a car from the leading auto dealers where the borrower where forced to accept the rates offer by the dealer on car loan. Moreover, there were strict norms to be followed while obtaining such loans. Usually, people with low credit scores were denied on such loans or offered higher interest rate. When you run dry on your cash, the immediate thought is to borrow it from your friend or neighbor. Private party car loans also know as person to person or third party car loans work exactly in the same way wherein you can purchase a car from your friend or neighbor and a private party car loan lender finances you for the purchase.

The norms and conditions are not that tough when it comes to obtaining a private seller used car loan. Usually, the rate of interest will be high due to the risk involved as compared to normal car loans. One has to understand that the private party car loan lenders make their money on the back end of the successful deals. It is important to check for the specifications before you sign the deal. A few things which one has to ensure is the proper transfer of title and the market value of the car you are going to purchase before entering into the agreement.

The borrowers can fix their loan period according to their financial status. They have the extra advantage of extending the loan tenure without any hassle. Make sure that you have your credit report safe to save some amount of money. Having a credit report that is in best shape will attract all the private party auto loan lenders to offer the loan at a lower interest rate without demanding much. A simple search in the internet will make the process easier and forms can be submitted online to these sellers. Usually the response time will not exceed 72 hours and you can happily walk away with the check if you meet the minimum eligibility criteria.

Most of the lenders set the loan tenure to be a maximum of 48 months and not more than that. It is important to stick to the repayment schedule. A larger down payment will reduce your burden and the rate of interest rate. This will substantially reduce the loan tenure by which you pay fewer amounts on the interest rates. Hence, it is always a good practice to be financially disciplines while opting for a deal from a private seller.

Thursday, April 8, 2010

How Private Party Car Loan Works?

A private party car loan also known as person to person car loan can be a best way to buy your cars without spending much. This type of car loan allows you to finance the car you would like to purchase from either friends, relatives or by neighbors. However, there are strict norms and conditions to be followed in private party car loans. It is important to remember that it is still a loan and to be repaid with proper interest rates in a fixed time.

The loan tenure would be usually less when compared to a loan from any of the dealers. The tenure might extend to a maximum of 4 years in case of private seller auto loans. Hence, you must understand that it is always better to repay fast as you will have to shell out extra money in terms of interest. Moreover, there are norms on the mileage, age of vehicle etc.

The interest rates are usually higher in this case. Normally, the interest rates would be 2% high when compared to the industry standards. It proves to be an unsecured loan in most of the cases which leads to a higher interest rate.

Private party car loans or third party car loans do not require any kind of down payment in most of the cases. However, it is highly recommended to have 25% of the price to pay as upfront payment to reduce the interest rates and the loan period. Otherwise, you end up paying more than the worth of the car.

Make sure that you combine the taxable amount, registration fees and all other extra expenditure in the loan amount to avoid any hassle. As some private auto lender do not allow this to be included. Hence, you must be ready to spend out of your pocket for such expenses.

It takes as long as 2 weeks to display your name in the title that comes in the official deal. This is due to the significant delay in the completion of the payoff process.

It is always recommended to check the condition of the car and clear title before buying through private auto sale. They might not be your friends always. As many a time people go by reading an advertisement. However, it is important to extract the best out of such deals. There are several service agents available who can help you getting a good car loan deal through an individual seller according to your requirements.

The entire process can be made hassle free by the use of online applications available in the internet. You need not put a strain on your budget limits. Some of the private party auto financing lenders will never bother about your poor credit ratings. People who find it difficult to make lump sum upfront fees can make use of this opportunity to drive their dream wheels. The applicant must be employed and should be minimum 18 years completed. Proper verification and back ground check on the documents submitted will be carried out before approving the loan.