When it comes to purchasing a new vehicle, there are several directions you can go.
You could buy directly from a dealer, get one from an auction house, maybe a company-owned fleet car or you could purchase from a private seller. If you go the private-seller route, you might need what’s known as a private party auto loan. And if so, here’s what you need to know. Let’s start with private party auto loan: what is it?
What is a Private Party Loan?
In simple terms, a private party auto loan or a person to person loan is a loan through a financial institution that allows the borrower to purchase a vehicle from an individual seller.
How does it work?
Now that you know what a private party auto loan is, let’s get into how it actually works.
First, you can apply for a loan to purchase from an individual by simply logging into our website www.RoadLoans.com . You will go to the section under the “Loan Selection” and select “Purchase From Individual.” If approved, you can begin looking for a vehicle being sold by a private party.
There are a few things to keep in mind if you get approved for financing through RoadLoans and want to work with a private seller:
- It typically takes around 15 days to complete the entire loan process
- If you are able to locate a vehicle through an individual seller you can possibly negotiate a good price
- RoadLoans works with a third party to assist with the paperwork for lien perfection
- The buyer must locate a seller who is willing to work through the RoadLoans process
- RoadLoans requires a vehicle inspection (not a mechanical inspection) to ensure the vehicle is approved for sale and meets our requirements
- RoadLoans allows for the vehicle to be 12 years or newer and have up to 100,000 miles
- If the buyer and seller work together and provide the required documents on a timely basis, the private party auto loan process can be seamless
In the end, it is your decision if you decide to purchase a vehicle from a private seller. Since every person’s financial situation is different, do your research and look into what works best for you!Written by: