How To Take Advantage Of Private Party Auto Loans
How To Take Advantage Of Private Party Auto Loans
Private party autoloan termstend to be less than buying a new car from a dealership. New auto loans are typically offered for as long as 72 months. On the contrary, the maximum available loan term for low rate carfinancingis usually 48 months.
The interest rates associated with person to personcar loansare usually higher than new or used car purchases from dealerships. It is very common for interest rates to be as much as 2% higher than new car dealer purchases and 1% for used cars. What interest rates you receive will ultimately depend onyour creditrating and history.
Most guaranteed auto loan providers will not require any sort of down payment when applying for a loan for either a dealership or private party purchase. However, a good rule of thumb is to try and put down no less than 20% to avoid becoming upside-down on your no cosigner car loan. Meaning, you wind up owing more than the car is worth.
When you buy a car from a dealer, your name is put on the title the instant you sign the papers and make the deal official. However, when buying a car from a private seller, it can take as long as two weeks for your name to be placed on the title of your car. This happens because it sometimes takes the seller's financial lender some time before they fully complete the payoff process.
In conclusion, it is important to understand how private party auto loans work. When you buy a car from a friend, family member or even a stranger, it is likely you will get a good deal. However, as mentioned, interest rates associated with private party auto loans are higher. This means that you may end up paying more for the vehicle as a result.