Private Party Auto Loans to Purchase Privately Owned Automobiles

Most auto loans are made through the dealership where the car resides. But, if you?re not planning on buying your next car from an automobile dealership, or if you are thinking of purchasing an automobile from someone in your neighborhood or any other private party, you?ll want to familiarize yourself with private party car loans. Private party car loans, also called private party auto loans, are intended for people that can?t deal with mainstream auto loans because they are purchasing the automobile from a friend or even in the classified ads in your local paper.

In most cases, to get private party car loans you will either need a good credit history, or you will need to have some money for a down payment. The worse that your credit history is, the more money that you will need to put down. Start your search for private party car loans at your bank where you have your checking account or at your local credit union. Credit unions usually offer the interest lowest rates and best terms for private party auto loans because members are also shareholders.

One great advantage to private party car loans is that you will get the opportunity to meet and speak with the car?s present owner. That means you will be able to ask them directly about the vehicle?s past; you can ask the previous owner if the car has been in an accident; see the regular maintenance records, receipts, etc. That can be better than any fax report that a dealership would give you. Another advantage is that private party auto loans are for automobiles that don?t have an additional price markup for the dealer, allowing you to buy the same car you might find on the car lot for a much better price. If you have poor credit, private party car loans can be a good way to start rebuilding your credit score. With each timely payment, the bank or credit union, will report to the three main credit-reporting bureaus.