What’s that one dreadful thing when it comes to getting a car? Most Americans will answer “dealing with the dealer”. Yes, it is so true. We have heard stories about dubious dealers who have conned someone or the other in our social circle. But, we still walk down to the dealership lot half-hearted and full of doubts. You may not know but there is one more option of buying cars. Welcome to the world of private party (non–dealer) car purchase where you don’t have to worry about a fraudulent dealer and his deceitful methods.
Most people are unaware of this opportunity and think that private party sales are risky. Once you completely understand person to person car sale, you will know that the reality is absolutely different.
What Is A Private Party Auto Sale?
Where buyer meets the seller
When you buy or sell your car to an individual without the dealer in picture, it constitutes a private party sale. When you buy a car from an individual, you don’t have to haggle with a dealer. You can meet the seller in person and get all the information from the horse’s mouth.
What Are The Advantages Of Buying A Car From A Private Party?
1. As mentioned earlier, you get first-hand information from the seller. There is no dealer to fabricate the vehicle information.
2. No high pressure car-price negotiation.
3. No dealership commission means lesser price.
How to Make a Perfect Private Party Car Purchase?
Make sure it is no junk
When you buy a used car, you need to check it properly. You certainly don’t want to end up with a lemon or a clunker. Don’t go for a very old car because most State Lemon Laws don’t cover them. So, while buying a used car from private seller, follow these important guidelines -
1. Get the car’s VIN (Vehicle Identification Number) and run a Vehicle History Report. It will let you know if the car was ever salvaged or flooded. The report will be helpful in convincing your lender that the car is not junk.
2. You must also check the car’s title. Most of the times, it will have a lien on it. If the same is with your car, then ask the seller to arrange a meeting with his lender (seller’s lien holder). Discuss at length the conditions and the duration in which the title will be transferred to you. It is always good to talk this out in advance.
3. Get the Odometer Disclosure Statement from the seller. It will have the exact number of miles that the vehicle has been driven. Most lenders insist on getting one from the seller.
4. Ask your trusted mechanic to inspect the car.
How to Get a Private Party Car Loan?
A private party auto lender takes risk in offering auto financing options because there is no additional dealer’s warranty. Also, the vehicle is not a certified one. So, lenders want you to fulfill their criteria.
Here are the requirements of private party auto loans -
1. Your age should be at least 18 years old. If you are getting a joint loan, then at least one of the applicants should be 18.
2. A Valid SSN is mandatory.
3. Your gross monthly income should at least be $2,000. A recent pay stub or IT returns (if self-employed) can be used as a proof.
4. Your employment term at the current and the last job should be more than six months.
5. You must be staying for at least six months at your current residence. Utility bills and rent receipt can be used to prove the term.
6. No open bankruptcy.
7. The vehicle should not have been driven for more than 80,000 miles nor should be older than six years.
All these requirements are pretty standard for a car loan and nothing out of the blue. Private party car loans are easy to obtain. There are quick and simple because of no dealership is involved. With several lenders offering private party loan, it is easier to buy a car and fulfill your dream.
Categories: Services Offered Tags: auto loans, automobile financing, buying a car, car title, dealership financing, individual seller, non dealer, person to person car loans, private auto lenders, private party, private party car purchase, private party sales, Used car, Vehicle History Report
Every individual would like to drive his/her own car. Buying a car might be a lifetime goal for some and for some might be a passion. However, the practicality is that not everyone can fund the purchase of the dream vehicle. The recent economic turmoil has added fuel to the fire and it has left many people to be financially bankrupted. The recent developments prove to be a good sign for recovery and the automobile industry has started picking up its sales. Most of the people would like to take a loan to buy their dream car. A lot of people cannot afford a new car and so think for opting for an economical used car. Choosing between buying a used car through dealership financing and private party car loans needs a lot of ground work research and analysis. Lets compare the deal here.
Advantages of Private Party Car Loans:
Private party car loans can be obtained at a faster rate when compared with others. A normal underwriting process will take place for a standard vehicle loan. The loan will be approved within hours of time with less amount of paper work.
Private party auto loan lenders offer flexible terms for the loans and you will not have a tough time to negotiate the terms. You can get a highly customized program depending upon your financial requirements.
The loan terms can be extended if required at the end for a higher rate of interest.
Private party car lenders do not demand a huge lump sum amount which has to be paid as upfront fee.
There no specific requirement needed to qualify your car while applying for individual seller car loan. Just a few document and you can get a private party car loan.
Disadvantages of dealership car financing:
Credit score scams: You would have possibly come up with a fair amount of credit scores after being toiled and moiled. This score could be a better score to get the deal approved at the normal rates. However, you will often envisaging a situation where a senior officer walks to you saying that according to their calculation, the credit score is too low for the loan to be approved. They would force you to take the loan at a higher rate of interest which is considerable only for the valuable customers.
Dealership financing is just yet another product that is sold by the dealers. They always want to make profit out of their business and do not fell scapegoats for their greed. Do not accept any deals that has got less than 2% APR as this is highly impossible except a few occasions.
The auto dealership financing can be looked as a one stop shop for all your needs. However, you must remember the fact that you cannot customize your needs and have to shell out extra money for unnecessary expenditure. The buyer must decide the kind of financing depending on the pros and cons of the lenders and loans.