It's not every day that you have the required amount of cash on hand when buying a car, whether from a dealership or a private seller. Securing financing at a dealership is relatively easy, considering lenders accredit most dealerships. However, financing a car from a private seller can be more challenging, primarily due to the limited availability of private-party auto loans. If you're unfamiliar, private-party auto loans are designed for transactions between buyers and private sellers. The main advantage of a private-party auto loan is its convenience, as the alternative, taking out a personal loan, comes with its own drawbacks. Before we get to how private-party auto loans compare to other auto loans and their respective benefits, can you get a private-party auto loan from Qualstar Credit Union?
Qualstar Credit Union exclusively provides auto loans through dealerships and does not offer private-party loans. They also offer auto refinance loans and provide preapproval options for their auto loans. In such a case, you can take out a personal loan. However, personal loans generally have higher interest rates than private-party auto loans. On the bright side, you benefit from more flexibility in using the funds.
Yes, you can use a private-party auto loan to buy a car from Exotic Car Trader. Our listings feature cars from private sellers who use our remote listing consignment services, making it convenient for you, who doesn't have to go through the process of traditional consignment. Feel free to browse our wide variety of listings and reach out with any questions about a specific car or your financing needs; our experts are always ready to help.
Using a private-party auto loan means purchasing a car from an individual seller instead of a dealership, which is advantageous since cars from dealerships are often priced higher. But beyond that, what are the other benefits of a private-party auto loan?
When financing a car from a private seller, your options are limited to a personal or private-party auto loan. A private-party auto loan is generally a better choice because personal loans are usually unsecured, resulting in higher interest rates due to the increased risk for lenders. In contrast, a private-party auto loan typically uses the car as collateral, leading to a lower interest rate. However, the rate may not be as low as a dealer auto loan offers.
Certain lenders provide options for prequalification or preapproval, and in some cases, both when applying for a private-party auto loan. This allows you to gauge the loan amount you can expect, giving you the flexibility to explore a wide range of options in the private seller market. Whether you're considering vehicles within your available funds plus the loan amount or solely based on the loan amount, this is particularly beneficial if you haven't settled on a specific car or are open to considering various options.
One of the main benefits of obtaining a private-party auto loan is the opportunity to utilize additional services that lenders may offer. These services can provide added convenience and financial protection throughout the car buying and ownership journeys. Some of the services offered by lenders include breakdown coverage and auto insurance.
A private-party auto loan combines financing with the freedom to finance a car from any private seller instead of being tied to specific dealerships in the case of a dealer auto loan. Furthermore, unlike a personal loan, it offers tailored financing and potential benefits such as lower interest rates. These benefits, and more that we haven't mentioned, make a private-party auto loan a great option to finance a car from an owner-seller.
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