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.