Private Party Auto Loans

Do you handle private party auto loans?

Q: Can you find me an auto loan for a private party purchase where there is an existing lien holder on the title?

A: Yes. For private party auto loans just select "Private Party" from the first (loan type) drop-down list. We will route your profile straight to used car lenders who specialize in private party auto loans. Our local private party auto lenders usually get back w/in 24-hours. Our national auto lenders may take a bit longer. As for the existing lien holder, a private party auto loan is made to you based on your credit and, to a lesser extent, the collateral (the car). If you are approved, they will want to know the name, address of the existing auto lien holder. While each lender handles it differently, all lenders are concerned about “perfecting title’ in private part car loans. You lender will most likely either:

• Payoff the current auto lien holder directly paying you the difference between the amount owed on that lien and the amount of the loan they are making you.

• Write you a check for the entire amount. You can either deposit that check paying the private party or sign the check over to the private party. In either instance, as the bank has made you a loan for the car, you need to ensure the other lien holder is paid off as that lien holder has to sign over the title before it is can be transferred.

Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.