Purchasing a vehicle from a private individual need not be a tricky affair. Many people do not know how to get a private party auto loan (P2P). Numerous online loan companies are able to provide you with this type of auto loan financing. This means you can purchase any car from anyone and there is no need to use a dealership. Buy from your neighbor, a friend or a business colleague, but know that most lenders will NOT allow you to buy from a family member living in the same household.
A few simple steps can be followed to get your application processed quickly. You simply need to fill in an application form online and the company will handle the rest. Now that was difficult, huh? The online auto finance company will offer you a quotation free of charge. Being able to get multiple quotes from the same site is a good thing since it saves you so much time and effort. Usually the installment schedule and any stipulations will be made available to ensure you will be able to meet the terms and make the repayments each month.
Again, note that you should obtain several quotations from various lenders. This can be done online by using quote providers that process
several quotes from a number of lending partners simultaneously. Do a comparison and seek out the one that offers the best services and the most affordable auto loan rates. Always read the fine print to any contract before signing and ensure all procedures are followed and understood thoroughly. Never sign anything unless you are one hundred percent sure or comfortable with a transaction.
Online lenders do tend to charge less than banks and other private financial institutions do. There is no down payment or any application fees. A few online lenders actually inform you immediately if the loan is approved or rejected, or on average within 24-48 hours. Look for a company that will post the information in a secure area so that only you can see the information. Not everyone does this so just know who you are working with and that they have BBB seals, security seals, and did not start up yesterday. You get the picture.
Purchasing a vehicle from a private party (non-dealer seller) follows the same principles as buying from a dealership. Ensure you mark the private party option or select the private party auto loan application when completing the form online. Just one last note – In almost every case, rates are slightly higher for private party (aka person to person) auto loans. Check rates closely before you decide to go this route but know that it’s only slightly higher than a used car loan.
Good luck and happy shopping.
Online Tools & Information: