Nowadays many online car loan sites offer private party car loans and other types of car loans such as auto loans after bankruptcy, bad credit car loans, no credit car financing etc. One needs to be 18 years to apply for auto loans after bankruptcy and must have a stable source of paying back the loan and if these requirements are fulfilled then securing a person to person auto loan or more commonly known as a private party auto loan is a cakewalk. However, before availing such types of car loans one should always check the condition of the car he is purchasing so that there is no chance of procuring a defective car.
Owning a car is a dream come true for everyone whether it is a small car or a big one. However not every individual has the cash and the opportunity to buy a car by paying cash up front and since that is not possible on a large scale auto loan lenders or car finance companies have come up with auto loans or which will help any individual to secure guaranteed car finance when required. However, there are times when an individual might eye a used car or second hand car owned by his relatives, friends or colleagues. When a person sets his eyes on a car already been used by someone he knows then that individual has to secure private party car loans to buy the used car. A private party car loan means that the car loan will involve transaction between the person who wants to buy the car and his relative and friend from whom he is purchasing the used car. A personal auto loan is different from a private party car loan as in normal auto loans the individual would have had to approach a car dealer to finance the new or used car whereas in a guaranteed private party car loans the transaction would be between the person and his friends or relatives.Car finance companies do not offer private party car loans and the concept of financing a private car through ones friends and relatives. There are various strict terms and conditions to be followed if one wants to avail a private party car loan. One of the conditions is that the interest rate on a private party car loan will be higher and the term period of repayment shorter. Normally people do not ask for down payment in private party car loans but an individual saves enough to pay at least 25% of the selling price. A down payment whether huge or small will ensure that the interest charged on the loan is not too high even though private party car sellers are often not bothered about the credit rating of a car buyer and will not even ask for too many documents required for verification. Since the process of approving a private party car loan is easy than a personal auto loan availed from car finance companies, many people evaluate the pros and cons of buying a used car to a new car and then finalize on one option.