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
A car’s basic purpose is to take you places. The lender shouldn’t mind if it is purchased from a dealer or a private party. Here’s your gold mine of information to help you get approved for private party auto loans. Get the best tips to buy your dream car.
Categories: Services Offered Tags: auto loans, buying a car, Car Loans, co-signer, dealership financing, down payment, easy, Guaranteed Approval, lenders, licensed car dealer, online application, person to person car, private party, private seller
A vehicle has become an important commodity in the market and a necessity for all the individuals in the country. It is tough to use the public transport to reach the office premises. The peak hour traffic will be hectic and life becomes dull. Do not allow the external pressure to have serious impacts on your life. How good it will be to have your own car and drive to all the desired week end vacations? How good a student will feel to have his/her own car to go for a trip with the friends? However, the current scenario is totally upside down and a common man cannot get an auto loan so easily from any of the leading financial institutions.
The practice of borrowing auto loans for private party purchase has become so common and it happens in a hassle free manner. Thanks to the technology with which people are able to get the amount in a matter of minutes if all the documents are verified accurately. People need not roam the places in search of a lender. There are umpteen numbers of private party car loan lenders whose information can be taken from the internet. It is important to choose the right kind of auto lender to get a low rate private party car loan. Here are certain ways on how to get lower rates on person to person car loans.
With the increase in competition in the auto industry both online and offline, there are huge numbers of person to person car loans offered. This competition gives an advantage to the potential borrowers to get less interest rate when analyzed properly. The customer has to do a proper ground work in knowing the maximum information about the private party lender and the car price before taking the loan.
Second way to reduce the interest loan is to put a sizable amount of down payment. Larger the amount is and larger the money you save on the interest rates. The rates can be lowered depending on the amount of money down.
It is highly recommended to go for a shorter tenure of the loan. By this way, you can save huge amount of money paid as interest. However, there will be additional charges recovered if the loan is extended due to any reason.
It is important to choose a brand of car that has got better resale value in the market. Do not go for the brand of cars that has got the least of resale value. The amount of risk involved while financing for better brand cars is less in most of the cases. This will reduce the rate of interest substantially.
The borrowers should make sure that the car has got all the auto insurance coverage, proper transfer of title and other documents properly. This keeps the car in the most secured way.
Categories: Services Offered Tags: Auto Financing, Car Loan, friends, higher interest rate, neighbors, online applications, person to person car loan, private party, purchase, registration fees, relatives, taxable amount
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.