Private Party Car Loans


What is a private party auto loan?

Buying a used car from a dealership is undoubtedly convenient, but making a purchase from a private seller has advantages too, like cutting out the middleman. Many vehicles are bought from private sellers and, without the luxury of ready cash, many of those are purchased with the help of financing. That’s where private party auto loans make an appearance. A private party car loan is financing offered by a lender specifically to fund a person-to-person auto purchase.  

How does a private party auto loan work?

Just like when buying a car from a dealer, it may help to start the financing process by using auto loan calculators to estimate what you can afford. Once you’ve got an idea of the total amount you can spend on a vehicle, what your monthly payments might be, and the effect of interest rates and loan duration, the next step is to apply for a private party loan. The Federal Trade Commission (FTC), a government body looking after the interests of consumers, recommends shopping around for financing in order to compare terms. So shop around for a private party auto loan with lenders like RoadLoans. RoadLoans is an online, direct-to-consumer auto lender with a streamlined process. We offer competitive private party auto loan rates to qualified buyers, and we accept applications from consumers with all types of credit.  

Private party car loans for all credit types, including bad credit*

Don’t assume you’re automatically disqualified from getting a private party auto loan if you have bad credit. Consumers with poor credit are often faced with shopping for a used car rather than a new one, and that may include checking out private vehicle sales. Not only does RoadLoans accept applications for private party auto loans from consumers with all credit types, it provides approved applicants with the same high levels of service regardless of credit score.  

The auto loan process for person-to-person sales

Applying takes just minutes and you’ll receive an instant loan decision. If approved, here are six key points to know about buying a car from a private seller through RoadLoans:
  1. It takes about 15 days to complete the whole loan process.
  1. We work with a third party that assists with paperwork to perfect the lien.
  1. You must locate a seller willing to work through the RoadLoans process.
  1. We ask for a vehicle inspection (not a mechanical inspection) to ensure the vehicle you want to buy is approved for sale and meets our requirements.
  1. The vehicle must be 12 years old or newer with up to 100,000 miles on the clock.
  1. If buyer and seller work together and provide the required documents in a timely manner, the private party car loan process can be seamless.

Shopping for a vehicle

When you’re ready to shop for a car, the FTC recommends doing your research to be confident you’re buying a good quality vehicle that’s right for you. Once you know what you’re looking for, consider shopping online at vehicle marketplaces like, which enable you to browse for used cars without leaving your home. RoadLoans is Autotrader’s trusted lender. Keep in mind that buying a car from a private seller means the vehicle will typically be sold on an “as is” basis, and not with the warranty or implied warranty that might come with a dealership sale. In addition, if the car has a manufacturer’s warranty or a service contract that was purchased separately, it may not be transferrable. The FTC advises consumers to get the vehicle inspected by a mechanic before making a buying decision. It provides further useful information about purchasing a used car from an individual seller at its website. If you’re looking for a used vehicle, private party auto sales could expand your options, and RoadLoans makes the auto financing process easy. Whatever your credit position, you can apply for a loan and get an instant decision.  

Apply for a private party auto loan.

Applying online takes just a few minutes, it’s free, and you’ll get an instant decision.

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    * “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press),,, Investopedia, and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by and Santander Consumer USA.