Advantages of Private Party Auto Loans

Private party auto loans are types of car financing that do not involve traditional dealership. Rather, it is a person to person lending transaction where the used car an individual wants to own is directly purchased from the actual owner of the vehicle.

Advantages of the Loans

Owning a second-hand car, truck, van, or any type of vehicle through private party auto loans offers various advantages for the customer. The benefits you can get from buying an automobile through this lending practice are:

No credit history requirement - Individuals with a bad credit history or those with less-than-perfect credit performance can avail the loan.

Longer term - Unlike the conventional 36 month car loan, your repayment capability will be considered and the loan term can be stretched up to 5 years.

Less or no down payment - Typically, borrowers are not required to secure a down payment. Some may be required, but a very minimum amount compared to traditional auto financing.

Vehicle inspection - Because it is purchased directly from the previous owner, the customer will be able to conduct a thorough check of the vehicle's history like its maintenance, physical, and mechanical conditions.

Competitive bargaining - Unlike vehicles available through dealership which prices are mostly fixed, the client can offer a better bargain price with the owner. If the owner thinks it is a fair price proposal, he is more willing to accept the deal than car dealers.