Financing a car has its fair share of benefits, but one of the best is that it allows you to spread the cost of buying the car over time. Among the many financing options available, dealer and private-party auto loans are the two most popular. As the name suggests, dealer auto loans are facilitated through car dealerships, often providing quick and straightforward access to financing. In contrast, private-party auto loans cater to buyers purchasing from owner-sellers, though they are considerably rarer. If you come across a lender offering private-party auto loans, it will likely be a credit union and not a bank. Credit unions are known for their member-focused approach, filling the gap left by banks by providing member-friendly loans. So, does TD Bank offer private-party auto loans?
Yes, TD Bank is one of the rare banks that offer financing for cars purchased from private sellers, whether new or used. The bank supports what we've been saying in other private-party auto loan articles. Since the loan uses the car as collateral, you could get a lower interest rate with a private-party auto loan compared to an unsecured personal loan. Besides that, TD Bank allows you to borrow up to the full purchase price and choose whether you'd prefer your interest rate to be fixed or variable. Additionally, the bank helps you create a repayment schedule that works best for you. Knowing you have a structured repayment plan through your private-party auto loan provides peace of mind. You'll have a clear understanding of your monthly obligations and how long it will take to pay off the loan.
A private-party auto loan works similarly to a traditional auto loan but is specifically designed for purchasing a vehicle from an individual seller rather than a dealership. First, you'll need to submit a loan application to the lender, typically submitting documents like proof of income and information about the car you'll need to purchase, for example, a 2020 Lamborghini Hurracan on Exotic Car Trader. Some lenders will offer prequalification or preapproval between application and approval, giving you an idea of the loan amount and terms you might qualify for. If approved, the lender will write a check or direct deposit to you or the seller, allowing you to complete the vehicle purchase. You then replay the loan according to the terms, like any other loan. Note that if the car is used as collateral for the loan, the lender will only transfer ownership after you pay off the loan. At Exotic Car Trader, our extensive listings feature vehicles from private sellers relying on our remote consignment services. This means you can find a car and leverage a private-party auto loan, including one from TD Bank, to make a purchase.
Besides offering a tailored private-party car financing option, here are some of the major benefits of a private-party auto loan:
Because the car serves as collateral, private-party auto loans often have lower interest rates than unsecured personal loans. This can save you money over the loan's repayment period.
As mentioned earlier, some lenders consider the car's market value, which might ensure you get a loan amount appropriate for the vehicle's worth.
Like traditional auto loans, lenders clearly outline their private-party auto loan terms, allowing you to choose with assurance, especially if you're comparing lenders.
Choosing a private-party auto loan is a great way to finance a car purchase from an individual seller. The good news? TD Bank is one of the few banks offering private-party auto loans, and at Exotic Car Trader, our extensive listings feature vehicles from private sellers. You know what that means. Get shopping!
Exotic Car Trader is the fastest growing marketplace built specifically for automotive enthusiasts. Click below to learn how you can sell your car with us.
LEARN MORE
