It's easy to buy a car from a dealership because most dealers offer financing options there. But what if you want to buy a vehicle from a private owner? How do you get a loan to do this? If you are considering this option, here are some tips to help you know how to get a vehicle loan when purchasing a car from a private seller.
Shop for a Loan First and Then the Car
Before you do anything else, you need to make sure you can get a loan to buy a car. To find this out, contact a lender that offers vehicle loans. Tell the lender that you desire to purchase a vehicle from a private seller and want to get preapproved for a loan. You will likely have to fill out an application and answer some questions. The lender may ask you how much money you plan on spending on the car. The lender might also ask you how much money you plan to put down on the purchase. If you can get preapproved for this loan, you can then move on to the next step.
Find the Car You Want to Buy
The next step is selecting the best vehicle for your needs and desires. As you do this, take your time to inspect the vehicles you view and always take them for a test drive. When you find the one you want, tell the owner that you want to buy it.
Put Down a Deposit and Get a Contract
You should explain that you are getting a loan to make the purchase but that you are willing to give him or her some cash to hold the vehicle for you. When you offer them money to hold the car for you, ask for a contract. Getting a contract will protect you in this deal.
Work With the Lender to Finish the Loan
Finally, you should contact your lender and provide the specifics for the deal. You'll have to tell them what type of car it is, the VIN, and the price. The lender will work on the loan and will provide you with a check to give the seller of the car. Once you have the check, you can go pick up your new vehicle.
Buying a car from a private seller with a loan might involve more work than buying a vehicle from a dealer, but this is the way you do it. If you need a vehicle loan, contact a lender today to find out what you must do to apply for one.