Private Party Auto Loans Made Easy
A Credit Article Contributed by Brandie King
Private Party Auto Loans Made Easy
When you are wanting to get an auto loan for a vehicle being sold by a private party, there are a lot of things that you need to take into consideration. You can find vehicles being sold by private parties at websites such as http://www.autotrader.com. After finding the vehicle that you want to buy, then you need to start working on getting the financing needed to buy it.
Shopping for Your Private Party Auto Loan
You know which vehicle you want to buy, but now you need to get a loan to buy it with. You most likely already know how much the owner is wanting for the vehicle and that will make it much easier to go shopping for your auto loan. You should always shop around for the best loan rates before choosing any particular one. Get rates from your own bank or credit union, other local banks and credit unions, as well as online from websites such as ELoan and Capital One Auto Finance. After getting rates from all of these places you will be able to compare them and see which one you want to go with.
Problems with Getting a Private Party Auto Loan
A lot of the time only people with very good credit are approved for this type of auto loan, so you may need to do some repairing on your credit before trying to get one. Order your credit reports online from Experian (http://www.experian.com), Equifax (http://www.equifax.com), and Trans Union (http://www.transunion.com). Once you get your reports examine them very closely for inaccuracies, errors, and incorrect information (both regarding credit accounts and your own personal information).
If you find anything you need to contact the credit bureaus to find out what their procedures are for disputing the errors, or you can visit the same websites above to dispute errors.
You are also likely to find that the interest rates on private party auto loans are higher than they are on traditional auto loans because there is more risk involved when purchasing a vehicle from an individual instead of from a dealership.
Additional Information Regarding Private Party Auto Loans
Even after getting approved for the financing, you will still have to get the title transferred from the current owner to you. How long this takes will depend on whether the owner has already paid the vehicle off or whether they are still making payments on it. You will have to deal with two different forms, the bill of sale application and the odometer statement.
Try calling your local Department of Motor Vehicles (DMV) to find out how you can file the paperwork for the title transfer yourself, which will usually save you a lot of time. You also need to know that you will most likely have to pay for the taxes, as well as the title and registration fees, when you visit the DMV for the title transfer because lenders will not usually include these fees in your loan.
