How to Get a Private Party Auto Loan, FAST & EASY

You’ve been searching Facebook Marketplace, Craigslist and AutoTrader relentlessly for the car of your dreams and finally found it. There’s just one catch, it’s for sale by the current owner and not at a dealership. When you buy a car from an individual and not a dealer, this is more commonly known as a “private party” sale.

Doing a private party sale, instead of going through a dealership, can be beneficial to both the buyer and the seller. The seller gets more money than they would have received from a dealer trade-in, and the buyer gets a better deal on the car and saves some cash.

But what do you do if you need to finance this beautiful machine?

When you don’t have all the cash just laying around to purchase a car, you must get a private party auto loan. This can be a complicated process, with transferring the title and setting up a sales contract.

Here’s how simple it is to get a private party auto loan, and how FlipRide makes it fast and easy!

What is a private party auto loan?

A private party auto loan is used when you found a car you would like to buy, it’s for sale from an individual and you need a loan/money to purchase that car. This loan helps you easily fund the purchase.

Most private party auto loans are available from your bank, credit union or a host of various online lenders. However, it is more difficult to get a loan from the bank on a car they have never seen before, from a seller they don’t know. Customers may have to settle for a typical bank loan, which has a higher interest rate than normal auto loans.

When and why would you need it?

If you are purchasing a used car from an individual and not a dealership then you will need to get a private party auto loan. It’s best to check your credit score before looking at cars to make sure you are eligible to be financed and for what amount you are approved for.

How do they work?

Private party loans are fairly similar to any other auto loan you would get when purchasing a car from a dealership or business. The one main difference is that interest rates are typically a little higher on used cars and private party loans than they are on new cars. Shopping for the best rate is very important.

These loans are typically shorter with the maximum around 48 months. Down payments are typically higher as well and can be up to 20% depending on your credit score. Many lenders will get you pre-approved as it helps when you finally find the right car you want to buy. It’s good for the seller to see this as well.

How do you get one?

When you find the used car that you want, you can easily finance it through FlipRide. We show you the most competitive rates from different banks so you can make the best decision for your situation.

At FlipRide we make sure the whole process is fast, easy and transparent. The seller gets paid and the buyer goes home with a sweet new ride, all from the ease of home.

Selling a car private party has always been tedious and complicated, until now.

When you buy or sell a car using FlipRide, all of these annoying little details are taken care of for you. In minutes, not days. We take care of the title transfer, sale agreement contract, get the buyer a loan, and pay the seller. See how it works and get in the express lane.

How Do Car Title Transfers Work?

Buying or Selling a vehicle can be a lot more in depth than some may realize. There is more to it than a mere handover of money and a set of keys. Shocking I know.

One of the biggest and most important parts of a vehicle sale or purchase is transferring a title. Failing to transfer a title or transferring it improperly can put you in a world of hurt and could lead to complications.

If you are the seller you must have a title in order to make the sale. If you are purchasing the vehicle, you must make sure the seller has a valid title for the vehicle.

I know what you might be thinking:

What is a vehicle title, and why do I need it?

A title is a legal document that shows proof of vehicle ownership. Without the title you can not sell, buy, or prove ownership. You also need the title to register the vehicle.

What happens if I have a vehicle loan on the car through a bank or other creditor?

When selling your vehicle to a private buyer, or even a dealership, keep in mind that your loan doesn’t just vanish into thin air, you have to rectify the funds and pay it off. Selling the vehicle does not get you out from under what you still owe.

Once you receive payment, you must get ahold of your lien holder and find out what needs to be done to payoff the loan you still owe them. Such a hassle, but it has to be done. That’s why we created Flip Ride, to make things less complicated. This process is taken care of without hassle if you use FlipRide to sell or buy a vehicle!

Selling a vehicle.

Now that you are selling your vehicle, what happens to that title?

You have to sign it, and then it has to be transferred out of your name and into the new owners name. You also have to have what they call a “Bill of Sale” drawn up. This is a documented agreement between the buyer and seller in a private party transaction..

Signing, Transferring, and the Bill of Sale.

Every State may have their own set of requirements, so you will need to do some digging into what your state fully requires of you when selling a vehicle, or purchasing one from a private seller.

Transferring the Title may have its own set of rules to follow depending on where you are located. Such a pain, right?

What exactly does a Title contain? That’s a really good question. Here are the basics of what you will find on most Titles in each state.

  • Your legal name
  • Your mailing and physical address
  • Your vehicles VIN, or Vehicle Identification Number
  • The vehicle body type and usage
  • The vehicle make, model, year, and exterior color
  • The license plate number on the vehicle
  • Last but not least, the mileage on the vehicle and the date that mileage was read

When you are selling your vehicle you need to sign the Title in all the right places, as well as the person who is purchasing it. Without your signature, the title is useless to the buyer.

What happens with your title when you have a lien (finance) on your vehicle.

When you purchase a car via financing through someone, or somewhere, that title to the vehicle does not belong to you, it belongs to the lien holder.

Your lien holder will have access to your address and has the right to repossess the vehicle if you fail to make payments. It isn’t until you make that final payment to the lien holder that the vehicle becomes yours, and yours alone.

After the payoff the lien holder will issue the title to you. This typically takes about 30 days.

Wrapping up!

Purchasing can be a long and strenuous task if you don’t know what you are doing, or how to do it all properly. Don’t even get me started on what all you go through when having to deal with the DMV on your own. Hours standing in line, a ton of red tape, and time you won’t get back.

How FlipRide makes every thing FAST & EASY!

Buying and selling a car private party has always been tedious and complicated, until now.

When you sell or buy a car using FlipRide, all of these annoying little details are taken care of for you. In minutes, not days. We take care of the title transfer, sale agreement contract, get the buyer a loan, and pay the seller. See how it works and get in the express lane.

What is GAP Insurance And What Are The Benefits?

It’s something we never hope will happen but unfortunately you have a 1 in 114 chance of getting into a car accident. While we would assume that our insurance would cover all of the damage and medical bills, odds are some of the cost may not be covered.

Getting in an accident can be stressful, but it can be even worse when you owe more on your auto loan than what your insurance is willing to pay. That’s where GAP insurance can save you.

GAP insurance was created to literally fill in the GAP between how much you owe on your auto loan and what the insurance company will actually pay you on the value of your car.

How does GAP insurance work?

It’s not too complicated, let me break it down for you with a real world example.

Let’s say you bought a used car from your good buddy Tim through FlipRide. A short time later you get into a crash and the car is totaled. At the time you owe 12,000 on the car, but the current value is only $9,000. Your insurance company would only cover the $9,000 value of the car, minus your deductible. That means if you don’t have GAP you would personally have to pay the $3,000 out of your pocket. GAP insurance pays that $3,000 so you don’t have to.

Why would I need GAP Insurance?

GAP insurance is not required but if you find yourself in any of these situations when financing your car, then you should consider purchasing GAP.

You made a small down payment or even 0 down.
When you make a small down payment or even $ down. Your car will be worth less than what you own almost immediately.

Your car depreciates fast.
Some vehicles tend to hold their value and depreciate slowly. Like a Jeep Wrangler or Ford truck. However, most cars will depreciate very fast. If you’re not making large enough payments or put a lot of miles on your vehicle, you could become upside down very quickly.

You traded your old car to a dealer.
If you traded your car to a dealer and bought something newer then you run the risk of being upside down in this car. A dealer will not give you as much on trade-in. This is why we suggest you sell using FlipRide. We help you get more $$$ for your car.

Your loan term is over 60+ months.
If you decide to finance your car on a longer term, you typically will have a higher interest rate. If the loan is over 5 years and you put little down, then your payments could potentially never catch up to the value of your car in the current market.

You put a lot of miles on the car, fast.
The more miles you put on a car the less it is typically worth. If you drive your car more miles than average you will more than likely run the value down to less that what you owe very quickly.

You have a high interest rate.
If you’re interest rate is on the hight side, I would say above 5-7% then you’re more than likely going to be upside down if your car is a total loss.

How to get GAP insurance for your used car.

Shopping for GAP Insurance can be very stressful, but it no longer has to be. This is why we do what we do on a daily basis. You can buy GAP insurance for your private party used car purchase in minutes directly through FlipRide! Just grab your keys, get your GAP and drive with confidence knowing you and your wallet are fully protected.

See how FlipRide works in this quick demo!

In Summary

GAP insurance is not needed if you purchased your car in cash or put a large amount of money down. But if you find yourself in a situation where you run the risk of being upside down in your car, then GAP insurance should be something to consider.

FlipRide helps you purchase GAP insurance right from our app. Just pick your plan after getting the keys to your new ride and you’ll be covered in minutes.

The 7 Best Marketplaces to Sell Your Used Car

When it comes to selling your used car there are so many options and ways to go about it that it can be confusing. Do you slap a sign in the window and cross your fingers that someone calls you on it? Do you go to CarMax and get offered way less than what it is worth? Or do you trade it to a dealer and lose more money?

All of these methods are viable, but if you choose to go about selling it on your own, there are a few places that make it easy. Selling a car by owner is the best way to get the most money for your car.

Selling a used car can be stressful, but it does not have to be. Here’s a list of the best marketplaces to sell your used car.

Facebook Marketplace

Facebook Marketplace is first on the list as my top pick. This is a great choice and alternative to using Craigslist as it is safer. It’s easy and free to list and the seller has to post with their public profile. With Facebook you know exactly who you are buying from! Not only can you post your car in marketplace, but you can idd your listing to groups as well. This comes in handy. One example is if you are selling a Ford Mustang you can post it in a Mustang group, etc. Same goes for any other car. There are groups out there for basically everything.


Craigslist is a great place to list your car if you simply just want to get more exposure. I would be careful as it’s difficult to know who is contacting you and lots of scammers tend to reply. Posting a listing is no longer free but it is super cheap. They did this to prevent an increasing number of reposts and spam listings.


Ebay is a great place to sell your car as millions of people search there every month. You can set a price for your listing or list it as an auction with a reserve. A reserve allows you to not sell unless the auction hits that price.

Auto Trader

AutoTrader is probably one of the best and more traditional mainstream marketplaces to list your car for sale. Dealers and private party sellers use it. You can also guarantee that anyone searching on the website is a little more serious about buying a car. Make sure you have great photos, description and history of the car so you can stand out from the thousands of other cars listed. is similar to AutoTrader but I would say there’s a bit less private party sellers than AutoTrader. which can be good if you have a clean car to sell. It’s free to list so it never hurts to have your car in as many places as possible.


OfferUp is one of the best places to buy stuff private party. Not only do they have a website but they make things easy with a really simple app that millions of people sell through every month. This is really great as it has buyer/seller ratings and is usually full of serious buyers. They have a huge section for cars and more people are using it every day.


Bringatrailer is a bit unique as it’s a great place to sell a car if you have something more unique, special or collectable. BAT as it’s called is full of serious buyers with money to burn. If you have a cool car then this is the place to go to sell it. It’s less mainstream and cars sell via auction real fast. I highly suggest this one!

Sell your car through FlipRide

Selling a car private party has always been tedious and complicated, until now.

When you sell a car using FlipRide, all of these annoying little details are taken care of for you. In minutes, not days. We take care of the title transfer, sale agreement contract, get the buyer a loan, and pay the seller. See how it works and get in the express lane.