What is a Private Party Auto Loan?

A private party auto loan is a type of loan wherein a used or second-hand car is purchased through a private party/individual in the absence of a standard dealership financing.

How Much is the Interest Rate?

Since private party auto loan deals with pre-owned cars, interest rates are noted to be higher compared to vehicles under the conventional new auto loans. The primary reason why the annual percentage rate (APR) is higher is that the term of payment of a private party auto loan is shorter than a dealership loan. The APR difference could range from 1.5 to 2 points.

How Much is the Down Payment?

This type of loan is very advantageous to individuals who have bad credit history or are struggling financially because the down payment is lower or not required at all. However, a buyer who has extra cash should consider paying an initial amount to cover the principal of the loan. 

Need an Auto Loan? Get a Free Quote Here!