I've seen rates as low as 5% recently, but depending on your credit history and market fluctuation you may find something different. Shop around and get a reasonable estimate of what rate you will be able to get for your loan. Bank Rate is a good place to start. They also have an auto loan calculator which will help you determine what cars you can afford.
You need to create a list of the cars you are interested and how much each one will cost you. Then you can plug those numbers into the Bank Rates auto loan calculator to determine your monthly payment, decide what term is reasonable, and see how much more you might have to pay in interest those options will cost you.
Once you have a value in mind you need to apply for the loan. If you did your shopping around in step one then you should already have decided on a place and you can plug in the information you gathered in step two, loan amount, loan term, and whether you are buying from a dealer or a private party. It may take a few weeks to process your application so don't be impatient.
Once you are approved you will usually be given something along the lines of a blank check which will clear up to the amount you have been approved for. You can use this like cash, but be sure to abide by the loan originators guidelines. If it says you can only use it for a new car then don't try and buy a used car, etc.
As far as actually finding a good deal on the car, I recommend looking for a private seller rather than going through a dealership. If you want more information on how to find a good deal, definitely check out Sacramento used cars, which has lots of good information.
You can find the same used cars for thousands less because there is less overhead. It can be a little bit more work and there are definitely things you should watch out for but overall it can be the best deal out there. Which is one of the reasons I like private party auto loans so much more than dealer loans where you do not even have that option.
That's it for today on private party auto loans.
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About Me
- Luke
- I am an experienced used car buyer and wanted to share my experiences with private party auto loans because they can really open up the possibilities for people with bad credit or who just can't afford the hefty "dealership tax"
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Ya, that's very true. Many people fell into this because they needed the money instantly. And the only solution they can take up is loan. Quite sad... that many of us are money slaves
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Buying a car with private party financing is likely to get you a good deal. However, it's still important to understand how this kind of loan works.
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I am sure this is going to help a lot of people looking fro car loans. So many people get rejected cause of their bad credit.
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