While some people believe that auto financing only exists for vehicles purchased from a dealership, lenders also provide loans for buyers purchasing a vehicle from private sellers. Nationwide offers auto loans for vehicle purchases from private parties. If you would like to apply for a private party auto loan, the application is available here.
Common questions about private party auto loans
If you've never purchased a car from a private seller, you may have a few questions about the purchasing and financing process.
- How is the vehicle title transferred?
- If there is a bank involved, how does the seller receive the payment?
- Do the buyer and seller need to sign anything to document the transaction?
- If the current owner has a loan on the car, how can he or she transfer the title?
- What options are available to finance a vehicle purchase from a private party?
If you aren't planning to pay the entire cost of the vehicle up-front, one of the most pressing questions you'll need to answer is how you're going to finance the transaction.
Securing a private party auto loan
Whether you’re beginning your search for a used car with a strict budget in mind or you’ve already verbally agreed with a seller on a price, you’re probably going to need financing for your vehicle purchase. Getting pre-approved for a loan allows you to determine your loan amount, interest rate, and payment before you begin shopping. Pre-approval is quick and easy, but once you’re pre-approved, you’ll wonder how you go from pre-approval to using your loan to secure the vehicle.
Below, we’ve listed many of the steps commonly involved in the purchase and financing process for buying from a private seller: