BUYING
FROM A PRIVATE SELLER
A person-to-person car loan
is when you buy your new car from a private party, not a
dealership. These types of car loans have many
similarities to financing for purchases from
dealerships. However, there are also many differences.
APPLY NOW FOR A PRIVATE PARTY CAR LOAN!
Interest rates
Person-to-person car loans typically have higher
interest rates than new and used car loans purchased at
dealerships. In fact, private party car loans can be up
to two points higher than new car loans and up to one
point higher for used cars bought from a dealer. The
interest rate you will receive will depend on your
credit history and credit ratings. Check out the
recent
auto loan rates we offer for all types of car loans.
**We suggest you
get a copy of your credit report before applying for
any type of loan. It is important to make sure your
information is accurate and up-to-date to ensure that
you receive the best rates and terms for your financing.
Loan terms
Available loan terms for private party purchases are
going to be less than new cars.
New car loans are generally available for up to 72
months. Financing for
used car dealership purchases is usually 48 months.
The typical maximum loan term for private party loans is
48 months. However, if you have good credit, it is
possible to finance your vehicle for a longer term.
**It is important to know that no
matter what kind of new or used car you buy, from any
source, you should finance your vehicle for as short as
possible. The longer your auto loan term is, the more
interest you will end up paying. Shorter loan terms will
also reduce the chance of
becoming upside-down on your car loan. Learn more on
choosing the right car loan.
Down payments
A down payment is not required when you apply for a
private party car loan with Star Loan Services. However,
it is a good idea to try and put down at least 20% to
avoid becoming
upside down on your loan.
Taxes, title and registration
When buying a car from a dealer, these items are
combined into the final loan amount. However, you can
not combine these fees into your loan when applying for
a person-to-person loan. These fees will be paid for out
of pocket.
Name on title
Your name will be placed on the title of your new
car the instant it is purchased from the dealer.
However, it can take up to two weeks for your name to be
placed on the title of a vehicle involved in a private
party purchase. Why? It can take the seller's lender
time to complete the payoff process.
In conclusion, buying a car from a
private seller can be beneficial. It may be possible to
obtain a better sale price, especially when buying from
a friend or relative. It is important to understand how
private party auto loans work. If you have any
questions, please
contact us.
