Banks have a long-standing reputation and are considered reliable lenders by many borrowers. They offer a wide range of loan products, including the less common private-party auto loans, which fall under general auto loans. So, what is a private-party auto loan? It's a loan tailored to finance car purchases from individual sellers instead of dealerships. Some banks may even specify that they won't finance a car if a broker is selling it. One major advantage of a private-party auto loan is that it tends to be less costly in the long run than a personal loan. But before we list some of the banks that offer private-party auto loans, how does a bank private-party auto loan work?
Few banks offer private-party auto loans and those that do usually have similar application, approval, and funds disbursement criteria. First, you'll have to fill out an application, which can be done online or in person, depending on the bank. The application typically requires you to provide your financial status and, in some cases, vehicle details, which also play a part in determining the loan amount should you get approved. Once you submit your application, the bank will review it, considering your financial situation and the car's details if requested. Upon approval, you'll receive a check, or a direct deposit will be made to you or the seller. When reviewing a bank's private-party auto loan terms, one key aspect to consider is how the car will act as collateral for the loan. This will impact your understanding of the loan's risk profile and potential consequences of default.
Exotic Car Trader's listings are all from private sellers selling through our remote listing services. So yes, you can finance any car you buy from us through a bank private-party auto loan. Why a private-party auto loan, not a personal or any other auto loan? First, as previously mentioned, private-party auto loans are specifically designed for purchasing cars from private sellers, so no other loan is better suited for a private car purchase. Sure, you can use a personal loan, but is the higher interest rate and potentially lower loan amount worth it? Other auto loans, such as dealership auto loans, aren't tailored for private-party car purchases.
Private-party auto loans from banks are relatively rare. However, here are a few banks where you can get financing for a private-party car purchase:
PNC bank is one of the best-known private-party loan lenders mainly due to their wide range of loan terms. Additionally, the bank also guarantees an autopay discount. The only major disadvantage is that you'll have to apply in-branch. But again, doing so ensures a more personalized experience.
U.S. Bank is another popular choice for many seeking auto loans. Like PNC Bank, opting for autopay can earn you a discount on your private-party auto loan, and you might not be required to make a down payment. Additionally, the bank offers shorter repayment plans, and the pre-approval process can be conveniently done online.
Private-party auto loans from banks are relatively uncommon, but they can be incredibly helpful if you're planning to plunge yourself into the private seller market. However, despite the rarity, it's essential to explore multiple options, even from credit unions, as some lenders may impose stricter requirements or limitations on the car being financed.
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