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 ebay.com. Here’s how Private Party Auto Loans helped her.

QUESTION
 

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 ebay.com. If I buy from him, what kind of things should I concentrate on while buying and applying for car loan? 

 

- Kimberly, Barrington, RI.

ANSWER
 

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.

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.

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.