I’ve been presented with a great oppurtunity to buy a car from an individual but I’ve never financed a car outside of buying it from a dealership. Should I contact my bank to get approved for an auto loan? Any other suggestions would be helpful too. Thanks!
7 thoughts on “How do you go about financing a car from an individual seller?”
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Long time ago, I spoke to a bank representative and he told me that in reality there’s no such thing as USED CAR loan. He explained that unlike a new car, banks don’t want to deal with repossessing used cars in unknown condition.
If you are looking for money for a used car, you can go to a bank (or any lending institution) and you can get an PERSONAL loan (some banks won’t even bother telling you that it is a personal loan instead of a used car loan).
You will be given certain amount of approved "credit" to be used within some given time (30, 60, 90 days) etc.
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This is all private to private sales. I’m guessing here but that tells me that the Title will be clear and paid. And if you ever missed payments, your car will not be in jeopardy of repossession. Of course your good credit will be in the toilet.
But this part I’m just guessing – but makes sense if the bank is only involved in the personal loan part and you just write a "check" from a bank during a purchase.
You can go to your bank or an outside lender. They will need the VIN number before you can purchase it, but that’s the easiest way.
Yes, go to a bank or a credit union.
The above people are correct(credit unions are best), you will also need a Bill Of Sale. Also remember to have a mechanic check the car out first. Good Luck
10 years in auto biz
You need to go to a Bank , your Credit Union , or a Fiance Company .
You can obtain a loan for your bank (called an auto loan or in some cases a personal loan) to purchase the vehicle from the individual. Your bank will offer a check to you in the amount requested and you will begin making monthly payments one month afterward. Good luck & enjoy the car!
I’ve actually done this. I sold a 91 Geo Storm to some one & they made payments to me. Naturally your on the other end of this situation. It can be done because the dealers who finance their own contract do pretty much the same thing. What I did was have an attorny write up a simple agreement (it really doesn’t even need to be from an attorny, but I’d noterize it if not) Had myself as lean holder on the title of the car & had a second set of keys in case they defulted with no payment after 3 mo’s. You may even have an attorny or someone who know whats going on look over the agreement. But, deffinatly don’t do it unless you’ve got yourself covered with something in writing and get recepts of payments.
good luck to you.