Private Party Auto Loans
When the time comes to find a great used car, you are often better off skipping the
dealerships and just looking to friends, relatives or the classifieds to find the best deal. In most cases you will
get more car for less money when you buy from a private party. When a dealer gets a car as a trade in they have to
put money into it before they can resell it, that's why you'll pay more for the same used car from a dealer than
you would if you bought it directly from the previous owner. Since even a used car will cost more than most people
can pay up front, private party auto loans might be a necessary option.
Of course, you can always try to get a loan from your local bank or credit
union but many times these are hard to come by. Especially with the economy the way it is right now. Banks and
credit unions are simply very conservative about the types of loans they write and a used car can be a dangerous
loan for them to make since the car, which is the collateral, may not actually be worth the amount of the loan.
The car may appear to be in great shape but something could go wrong and it might lose a lot, or
all, of its value. If that happens the bank is out of luck when it comes to their collateral. It's usually easier
to get a new car loan than a used car loan.
There is another way though, you can try to get a private party loan. In most cases the companies you'll be working
with won't care too much about your credit history. They tend to be more interested in the vehicle you are trying
to buy. Again, the car is the collateral and they want to make sure that they have more than enough collateral to
cover the amount of the loan.
In most cases it will be the easiest to go through an online broker who can match you up with the
right loan. That way you'll only have to fill out one application instead of several. A few things that you will
need to be aware of are: you need to be at least 18 years old, you have to earn a minimum of $420 dollars weekly
(or about $22,000 in a year), you should have been at the same job for at least 6 months and lived in the same
location for at least 6 months.
Of course, if you have bankruptcies that aren't discharged you won't be able to get a loan. Make
sure that when you take on your new loan, you can afford it. Make sure you factor in not only the car payment but
the insurance and maintenance costs too.
With the economy the way it is right now there is kind of a weird catch 22 situation happening. On
the one hand, many banks have tightened their lending procedures to protect themselves from bad loans, but on the
other hand there is an increasing recognition of the fact that many people have suffered and their credit scores
have suffered too, so banks are more likely to give credit to people with a few slight dings on their credit
report. The bottom line is that there are private party auto loans that you can get as long as you seem like you
will be able to repay it.