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Municipal Credit Union approved me for a 15k loan. But the only problem is that I have to buy it from a dealership. Do banks finance cars from private sellers? I want a specific car and i've seen many but im sick and tired of these sales men Ive had nothing but horrible experiences not only are they over charging for the used car i want but all these fees are ridiculous.
Yes, if you have good credit, any bank I've ever known of would be happy to provide a loan to buy from a private party. They may require a certain amount down, want to make sure the car's value is more than the loan, etc.
The last time I borrowed money for a car was 30+ years ago, and it wasn't really for me but for my son. Son and I went car shopping to the city (350 miles away), found all the used cars on lots were crazy high and didn't want to play their games, so we got a newspaper and started calling private parties. The first (only) one we looked at was perfect. I called my banker and had him wire money to the seller's bank. It took a couple hours to get transferred but we got it, no questions asked. I knew the banker fairly well, however, and I had excellent credit (back then). Son went down to the bank the next day and signed the papers, iirc.
Not all banks will do auto loans for private party transactions, it also depends on your area. Chase bank won't do them in my area in TX, Bank of America will but they don't advertise it at all, only dealership transactions, and Wells Fargo says they do but they don't list their private party lending rates, only the new/used dealer and refinance rates.
We just did this last week actually, to buy another SUV. Went with B of A.
I just tried to do this (financing for private party) and Bank of America had no problem with it. Also, my credit union was willing to do it also.
Since the seller was not willing to take a bank issued cashier's check, I had to go with getting a loan with his bank (Bank of America) so that the money could be directly wired to his account.
The sale ended up not going through though because the seller was trying to flip the car and did not register it (title skipping/jumping) and the bank said that was a no-no, so they would not lend me the money to buy it.
I sold a car to a guy who got a bank loan. The bank had to be given the VIN before they would issue the funds to my buyer but that was the only condition I knew about. Shop around.
Most credit unions will lend on priovate party sales, as will place like Capitol One and Road Loans. Interestingly enough places like Capitol One and Road loans and the like won't loan on cars from non main line dealerships (so your basic used car dealership or wholesaler), while credit unions will.
The Financial Institution is financing YOU and THE VEHICLE . . . they should have absolutely no interest or concerns as to where the vehicle is being purchased. I fully understand the need for precautions, however, this is ridiculous especially considering how easy vehicle history "tracking" is nowadays.
Personally, I would search for another financial institution.
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Son went down to the bank the next day and signed the papers, iirc.
