If you have ever purchased a used car from an individual, then you may be familiar with private party auto loans. Private party auto loans are loans made by banks, or lenders, which allow you to purchase a vehicle from an individual rather than a new or used car dealership. Usually, applying for a private party auto loan is no different than applying for a conventional car loan. You simply fill out an application and submit it to the lender, and then wait for the results. If your application is approved, the lender gives you a check you'll use to purchase the vehicle from the individual.
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Applying for Private Party Auto Loans
One of the quickest and easiest ways is to apply for private party auto loan is to do so online. There are many websites that give you the ability to apply for any type of auto loan—including private party loans. To apply for these loans, you simply select the lender of your choice, fill out the application and click to submit. Once the application is received, the lender will take some time to review and determine if you meet their minimum requirements for approval. This portion of the process takes about 24 hours.
If the requirements are met, they will contact you and set up arrangements for you to receive the check in the amount you requested. A check can take up to 5 days to arrive, but most banks will offer it to you within a day or two.
Getting the Best Rates
While there are indeed many online sources for private party auto loans, some of the best are available at your local bank. Wells Fargo, Chase and Bank of America all offer Private Party Auto Loans . Not only do these banks make applying for a private party auto loan very quick and very convenient, but due to their sheer size and experience, they offer some of the best interest rates available. Moreover, they are very reputable which will give you peace of mind.
If you have excellent credit, then the bank will be able to return you offers with some very favorable rates. On the other hand, if you have less than perfect credit, the rates will subsequently be higher.
Once the bank has received your application, they can check your credit and have a firm decision within the hour - sometimes even less. Once you are approved, the bank will contact you and verify your address information so they can expedite the mailing of your check to you. Typically, they will use an expedited service like FedEx or Express mail to make sure you receive a check within two or three days. By doing this, they help ensure that the seller doesn't decide to sell the vehicle to someone else. If you make the seller wait too long, they might get impatient and sell the car to someone else.
Once you receive your check, you simply endorse it to the seller and complete some basic transfer information and documentation. Once all the documents are signed, you then return the documents to the lender. They will then send you copies of the documentation as well as your monthly payment coupons. You have completed the transaction, and you then own the car.