Used auto loans - private party

If you’re buying a car from a private seller, it’s important to verify the seller’s identity and ownership of the car. Consider checking the car’s title and the seller’s identification. You’ll also want to verify the car’s history and maintenance. You can do this with online vehicle history sites, and ask the seller for any maintenance and repair records. In addition, you can check for any open recalls on the car online using its Vehicle Identification Number (VIN).

You may also want to conduct a thorough visual inspection of the car’s interior and exterior and take it for a test drive. Also, you can take the car to a mechanic for a pre-sale check.

When actually purchasing the car, ensure the title is transferred to your name before paying the seller, and consider using a check or money order rather than cash so there is a record of payment.

When you apply for a private party auto loan, the lender will conduct a hard inquiry, which may initially reduce your credit score slightly. Taking on a new loan will also increase your debt and may reduce the average age of your credit accounts, which may also impact your score. However, a private party auto loan can also improve your mix of credit accounts if you don’t already have an installment loan, which may be viewed positively. Finally, making on-time loan payments can impact your credit score positively.

Our secured used auto loan options offer fixed rates and no pre-payment penalties. When comparing offers, be sure to compare APRs, which reflect both your interest rate and any lender-imposed fees, to understand the true cost.

With private party auto financing, you get a loan directly from a lender and buy a vehicle from an individual seller. With dealership financing, the dealership arranges the financing—unless you have a third-party loan from a lender. Private party financing allows you to shop around for the best rates and terms. With dealership financing, you’re limited to the lenders the dealership works with, which may result in less competitive interest rates or terms.

Some lenders may restrict auto loan terms to certain model years and mileage. With Truist’s private party auto loan, you can purchase a car up to 20 years old and with up to 120,000 miles.