The car has become… an article of dress without which we feel uncertain, unclad, and incomplete. – Marshall McLuhan
Cars are undeniably an important part of the American culture! Every person needs a car of his own. But can everyone really afford a car? Sadly, the answer is no.
The auto industry has suffered the most in the current economic crisis. Lenders have become more rigid in giving out loans. Tighter lending norms, large number of defaults and bad credit scores is the harsh reality. But all these problems have given a new breathing space to the private party auto lenders.
Private party lending is very useful when an individual buys a car from another and no dealer is involved.
Let me give you an example.
You decide to buy a car from your friend, family, or anyone off the Craigslist or eBay. Now you may not have enough money to buy a car on your own. So, the only option left with you is availing auto financing.
Getting approval of auto loans isn’t easy, is it?
Lenders want to have nothing but an excellent credit score. They won’t even touch the application if it doesn’t mention a pristine credit history. They will not trust a private sale.
Amidst all the clouds of rejection and despair, private party auto loans are a silver lining.
The loan rates are obviously a tad higher because of the higher risk of default involved. But the great thing is you don’t have to deal with sly salesmen and devious dealers. You also save on the commission which was supposed to go straight in the dealer’s pocket.
There are a few private party lenders who may not even ask for a down payment. But it is always advisable to put down 20 % of the amount. It will definitely benefit you in availing auto loans at lower interest rates.
Know Your Onions
Your credit score is of prime importance. Your credit score and the loan approval chances are almost joined at the hip. So get a free credit report and ensure that your information is 100 % accurate.
Regular payments are a must for every loan. So, it is important that you decide on a budget. You must accurately calculate your income and expenses and estimate how much you can afford to pay.
Once you are through this, get first – hand information about the car. You can easily talk to the current owner about car history. You will be able to get all the information about previous accidents, damages and even minor blips.
Trust None, but Facts
Even though the owner (your family/friend) told you all about the car, it is always better to check the facts twice. Several websites will help you get the Vehicle History Report. You only need to have car’s VIN (Vehicle Identification Number) for this. This will make you more confident about your decision.
REQUIREMENT for Private Party Auto Loans
>> You must be at least 18 years old
>> You must have a Valid SSN
>> Most lenders want you to earn at least $418 per week or $21,736 annually
>> You should be with your current employer for at least six months
>> You should be living at your current residence for at least six months
>> No bankruptcies and foreclosure
Where Can You Find Private Party Lenders?
Well, several financial institutions offer private party car financing. But, internet is the easiest and quickest way to find it. Many websites offer you to generate free quotes and also give an option to compare them. With increasing number of such websites, you can easily get competitive quotes.
When you take the online road, it is important to do a thorough research.
Internet is full of swindlers and tricksters trying to steal your information. So you must only deal with reputed websites. You must be ensured about the company’s credibility. Google the company’s name and try to know more about it.
To ensure safety, share your information with websites that have a secured connection. Usually HTTPS in the URL and a security certificate on the website will do the job.
Once you are through it, apply by filling up the application form. If the website doesn’t provide with an online application form, seek quotes through e-mail.
It is important to know that any false information can ruin all your chances of getting the loan. So, share correct information only.
When you avail private party loans, the lender might be interested in some requirements such as the make and model, mileage, maintenance, car insurance policy, etc.
As you fill the application, it is sent to local lenders of your area. The lenders compete for your application and this is how you get the best quote.
Don’t sign the agreement without comparing quotes. Know everything about the loan terms. Not only compare car loan quotes, but also the pros and cons associated with every quote. Only when you compare, you will have the utmost satisfaction of making a favorable deal.
Private party lending is an affordable option of buying a used car. It helps you to buy a GOOD car without any dealer intervention.
So, what are you waiting for? Avail a private party auto loan and drive your very own car.
Best of luck!
Every single individual would like to have the smell of a new car in their motor room. There are people who can buy the brand new cars according to their desire and there are some people those who are not able to fulfill their dreams. It is their poor financial status which prevents them from buying a new car. If you are among them then not to worry with financing option available in market. You can get a financing for a used car from private seller at affordable payments.
Traditionally, people used to purchase a car from the leading auto dealers where the borrower where forced to accept the rates offer by the dealer on car loan. Moreover, there were strict norms to be followed while obtaining such loans. Usually, people with low credit scores were denied on such loans or offered higher interest rate. When you run dry on your cash, the immediate thought is to borrow it from your friend or neighbor. Private party car loans also know as person to person or third party car loans work exactly in the same way wherein you can purchase a car from your friend or neighbor and a private seller car loan lender finances you for the purchase.
The norms and conditions are not that tough when it comes to obtaining a private seller used car loan. Usually, the rate of interest will be high due to the risk involved as compared to normal car loans. One has to understand that the private party car loan lenders make their money on the back end of the successful deals. It is important to check for the specifications before you sign the deal. A few things which one has to ensure is the proper transfer of title and the market value of the car you are going to purchase before entering into the agreement.
The borrowers can fix their loan period according to their financial status. They have the extra advantage of extending the loan tenure without any hassle. Make sure that you have your credit report safe to save some amount of money. Having a credit report that is in best shape will attract all the private party auto lenders to offer the loan at a lower interest rate without demanding much. A simple search in the internet will make the process easier and forms can be submitted online to these sellers. Usually the response time will not exceed 72 hours and you can happily walk away with the check if you meet the minimum eligibility criteria.
Most of the lenders set the loan tenure to be a maximum of 48 months and not more than that. It is important to stick to the repayment schedule. A larger down payment will reduce your burden and the rate of interest rate. This will substantially reduce the loan tenure by which you pay fewer amounts on the interest rates. Hence, it is always a good practice to be financially disciplines while opting for a deal from a private seller.
The recent economic turmoil has left millions of people with shattered dreams of owning a car. There are huge numbers of people who are left with no option then to use public transport when it comes to the repayment of their auto loans. The auto loans are considered to be collateral and the dealers have got sole rights to take back the car if the loan is not repaid. The automobile industry has thus seen a down turn in the economy of the country. The bounce back in the economy is very much dependent on the recovery of the automobile industry. The car manufacturers with the help of government have however created new opportunities for both the borrowers and lending institutes.
The dealers were keen to fund the new cars and not the used ones in the past and so not many people were able to finance their private purchase vehicle. However, these private party car lenders have become the prominent figures in the society after the turmoil. The lenders fixed the amount of loan depending on the invoice produced by the customer. The lenders had to verify the authentication of the documents and the commercial context under which the transaction took place in order to be assured of the amount given away. This private party used car loans are offered at a higher interest rate as the risk involved is higher in this case. However, with a steep rise in the competition in the market between the lenders you can get reasonable rates.
The borrowers can find a plethora of private party lenders who are ready to relax the norms to give away loans. However, the interest rate is still high in these cases when compared to the normal dealers. These private party auto loan lenders works based upon 2 criteria.
1. The credit worthiness of the borrower
2. The value of the car in the market.
The private party auto loans are highly preferred by the people due to the negotiation power on the price of a car (as you know the person from whom you are buying) and its cost-effectiveness. The customers just have to produce the proper evaluation of the asset with the insurance coverage for the vehicle.
The under privileged people of the society who have always been in the back burner seek the assistance of private party auto lenders to drive their dream cars. A person who wants to prefer a non dealer option in buying an economical car with much hassle of negotiating at a dealer can stick to this method of obtaining the car loans. However, they need to remember that the loans might have higher interest rates when compared to the traditional loans. Private party car loans are always considered the best alternative provided if repaid without any defaults.
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 car 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.
A private party car loan also known as private party auto financing can be a best way to buy your cars without spending much. This type of car loan allows you to finance the car you would like to purchase from either friends, relatives or by neighbors. However, there are strict norms and conditions to be followed in private party car loans. It is important to remember that it is still a loan and to be repaid with proper interest rates in a fixed time.
The loan tenure would be usually less when compared to a loan from any of the dealers. The tenure might extend to a maximum of 4 years in case of private seller car loans. Hence, you must understand that it is always better to repay fast as you will have to shell out extra money in terms of interest. Moreover, there are norms on the mileage, age of vehicle etc.
The interest rates are usually higher in this case. Normally, the interest rates would be 2% high when compared to the industry standards. It proves to be an unsecured loan in most of the cases which leads to a higher interest rate.
Private party car loans or third party car loans do not require any kind of down payment in most of the cases. However, it is highly recommended to have 25% of the price to pay as upfront payment to reduce the interest rates and the loan period. Otherwise, you end up paying more than the worth of the car.
Make sure that you combine the taxable amount, registration fees and all other extra expenditure in the loan amount to avoid any hassle. As some private party car loan lender do not allow this to be included. Hence, you must be ready to spend out of your pocket for such expenses.
It takes as long as 2 weeks to display your name in the title that comes in the official deal. This is due to the significant delay in the completion of the payoff process.
It is always recommended to check the condition of the car and clear title before buying through private auto sale. They might not be your friends always. As many a time people go by reading an advertisement. However, it is important to extract the best out of such deals. There are several service agents available who can help you getting a good deal through an individual seller according to your requirements.
The entire process can be made hassle free by the use of online applications available in the internet. You need not put a strain on your budget limits. Some of the private party car financing lenders will never bother about your poor credit ratings. People who find it difficult to make lump sum upfront fees can make use of this opportunity to drive their dream wheels. The applicant must be employed and should be minimum 18 years completed. Proper verification and back ground check on the documents submitted will be carried out before approving the loan.