Are you trying to buy a new car, but afraid about your credit? If you have a bad or low credit score, you may want to try investigating a person-to-person auto loan or aka, private party auto loan.
A private party auto loan is a loan where a bank or credit union gives the loan to the consumer when they purchase a motor vehicle from a private person. What is great about these loans is that the lender utilizes the car you are purchasing as collateral. If you cannot pay your loan as agreed, then the bank repossess the motor vehicle. This helps the bank or credit union give out loans more frequently and easily than through a car dealership.
Now, of course, this means that the consumer works with a private individual instead of a car dealership. However, dealing with a private individual has its advantages thanks to this loan process. The consumer is able to facilitate a relationship with both the lender and the individual selling the motor vehicle. Extensive communication with the seller aids in getting to know the car in greater detail and will allow you to get a CarFax report to verify the background and condition.
A relationship with the bank or credit union helps when negotiating the loan in question. At a dealership, the loan process and seller of the auto are all through the car dealership. Banks work through a dealership in a process known as an indirect loan, and are very strict in their loan requirements. They also allow dealers to mark up the loan so you invariably pay more interest than you would if you went direct to a lender. There is more flexibility when working directly with the financial institutions than when you use the car dealerships and dealer financing. It is important to know that when you work directly with lenders will also save you money because you will be getting the lowest APR available, especially when you can get more than one quote on financing. Dealerships always have a significant mark-up on the autos they are selling. By using a private party auto loan, you simply work with the seller directly (aka, a private party who is usually selling their car), which will allow you to negotiate and most likely, keep money in your wallet.
To find a lender and get an all in one multi-quote offer, simply go online to myAutoloan.com while searching for cars you want to investigate at the many used car sites, at the same time you are searching for a loan. Since most lenders provide online forms, you can work out everything online instead of at a busy car dealership. It’s always best to compare side by side, the offers, so that you can select the offer that is best for you.
Keep in mind, however, that online lenders are of equal quality to any bank lender through a car dealership. In fact, they might even be the same ones. The lenders will require typical information for any loan with specific requirements. These include, but are not limited to, a social security number, consistent residency of at least two years or your last two residences for more than 6 months, and proof of age and employment. Many national lenders require a minimum income of at least $500 a week or $26,000 annually with proof that you were employed at your last two jobs for at least 6 months. Always remember these facts, no matter how much you can save with a private party auto loan that the loan is still a loan and the auto will be used as collateral.
Always check your credit score when deciding to purchase a product like a motor vehicle. Once you know your credit, try a private party auto loan. You will save money and purchase the car you want thanks to a person-to-person auto loan.