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Banks That Finance Private Party Auto Loans

Banks That Finance Private Party Auto Loans

Many major banks, credit unions, and online lenders offer private party auto loan options. Here are some of the top lenders to consider based on factors like interest rates, fees, loan amounts, and customer satisfaction:

LenderStarting APRLoan AmountsLoan TermsMinimum Credit Score
Autopay4.76%$2,500 – $100,00024 – 96 months560
PenFed Credit Union5.24%$500 – $150,00036 – 84 months650
myAutoloan5.99%Up to $100,000Up to 84 months500
LightStream6.99%$5,000 – $100,00024 – 84 months660
Digital Federal Credit Union6.99%Up to $100,000Up to 84 months600
Bank of America7.39%$7,500 – $100,00012 – 75 monthsNot disclosed
Ally Bank8.64%$8,000 – $100,00012 – 75 months600
PNC Bank7.49% (as of 3/16/2024)Not specified12 – 84 monthsNot disclosed
Consumers Credit Union5.74%Up to $100,000Up to 84 months600
LendingClub8.05%$4,000 – $55,00024 – 60 months510
Banks That Finance Private Party Auto Loans


  • Starting APR: 4.76%
  • Loan Amounts: $2,500 – $100,000
  • Loan Terms: 24 – 96 months
  • Minimum Credit Score: 560

PenFed Credit Union

  • Starting APR: 5.24%
  • Loan Amounts: $500 – $150,000
  • Loan Terms: 36 – 84 months
  • Minimum Credit Score: 650


  • Starting APR: 5.99%
  • Loan Amounts: Up to $100,000
  • Loan Terms: Up to 84 months
  • Minimum Credit Score: 500


  • Starting APR: 6.99%
  • Loan Amounts: $5,000 – $100,000
  • Loan Terms: 24 – 84 months
  • Minimum Credit Score: 660

Digital Federal Credit Union

  • Starting APR: 6.99%
  • Loan Amounts: Up to $100,000
  • Loan Terms: Up to 84 months
  • Minimum Credit Score: 600

Bank of America

  • Starting APR: 7.39%
  • Loan Amounts: $7,500 – $100,000
  • Loan Terms: 12 – 75 months
  • Minimum Credit Score: Not disclosed

Ally Bank

  • Starting APR: 8.64%
  • Loan Amounts: $8,000 – $100,000
  • Loan Terms: 12 – 75 months
  • Minimum Credit Score: 600

PNC Bank

  • Starting APR: 7.49% (rates as of 3/16/2024)
  • Loan Amounts: Not specified
  • Loan Terms: 12 – 84 months
  • Minimum Credit Score: Not disclosed

Consumers Credit Union

  • Starting APR: 5.74%
  • Loan Amounts: Up to $100,000
  • Loan Terms: Up to 84 months
  • Minimum Credit Score: 600


  • Starting APR: 8.05%
  • Loan Amounts: $4,000 – $55,000
  • Loan Terms: 24 – 60 months
  • Minimum Credit Score: 510

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Top Trusted Reviews For Private Party Auto Loans

If you’re curious which of these lenders is the best fit for you or has the best reputation, I found a few trusted sites that offer some extensive reviews on the above lenders that I highly recommend checking out:

  1. NerdWallet –

NerdWallet has a dedicated article reviewing and rating the top 6 lenders for private party auto loans. They provide details on APRs, loan amounts, minimum credit score requirements, and pros/cons for each lender.

  1. –’s article goes in-depth on the best lenders offering private party loans, including myAutoloan, LightStream, Digital Federal Credit Union, and Bank of America. They explain how they selected and rated each lender.

  1. MarketWatch –

MarketWatch provides a comprehensive guide to private party auto loans, including their top lender picks like Autopay, PenFed Credit Union, myAutoloan, and Digital Federal Credit Union. They cover key details on rates, amounts, terms and availability.

What is a Private Party Auto Loan?

A private party auto loan is a type of vehicle financing that allows you to purchase a car from an individual private seller rather than a dealership.

These loans work similarly to traditional auto loans from banks and credit unions, but with a few key differences:

  • You work directly with the lender instead of going through a dealership
  • Interest rates are typically higher than dealer-sourced loans
  • There are often restrictions on the age and mileage of the vehicle

What’s The Maximum Loan Amount?

From my research, the maximum loan amount offered for private party auto loans is $100,000. However, many of the lenders did not list a maximum amount, so those with excellent credit might be eligible for a higher amount.

Private party loans are secured loans, meaning the vehicle you purchase acts as collateral. If you default on the loan, the lender can repossess the car.

Lender Vehicle Restrictions For Private Party Auto Loans

Restriction TypeTypical Restrictions
Age Restrictions– Maximum vehicle age for financing: 8-10 years from the current model year, with some exceptions up to 12 years for certain borrowers. – Vehicles over 10-12 years old are generally not eligible for financing.
Mileage Restrictions– Maximum mileage for financing: commonly 100,000-125,000 miles. – Lower caps (80,000-100,000 miles) may apply for older vehicles. – Extremely high mileage (over 150,000 miles) vehicles are very difficult to finance.
Risk ConsiderationsVehicles under 5 years old with less than 60,000 miles are considered lowest risk. Older and higher-mileage vehicles face tighter restrictions and requirements.
Private Party Auto Loan Vehicle Restrictions

How to Get A Private Party Auto Loan?

Eligibility Requirments

here are the typical eligibility criteria lenders look at for private party auto loans:

Credit Score Requirements:

  • Most lenders require a minimum credit score in the 600-700 range for private party auto loans, though some allow scores as low as 500-600 for subprime borrowers with higher interest rates.
  • Those with excellent credit scores of 720+ will qualify for the best rates and terms.

Income Requirements:

  • Lenders want to see you have enough steady income to afford the monthly loan payments, usually looking for a minimum gross monthly income of $1,500-$2,000+.
  • They’ll look at your debt-to-income ratio to ensure you don’t have too many other obligations.

Down Payment:

  • Many lenders require a down payment for private party loans, often 10-20% of the vehicle’s selling price.
  • A larger down payment can help offset risk for borrowers with lower credit scores.

Other Requirements:

  • No open bankruptcies or recent vehicle repossessions
  • Proof of income, residency and identity
  • Some lenders require membership like joining a credit union

The Process

The process for getting a private party auto loan is fairly straightforward:

  1. Find the car you want to buy: Identify the specific used vehicle from a private seller and get details like the make, model, year, mileage, and VIN number.
  2. Shop lenders and apply: Research our list of different banks, credit unions, and online lenders that offer private-party auto loans. Compare interest rates, fees, loan terms, and eligibility requirements. You can often get pre-approved before selecting a vehicle.
  3. Get approved and finalize the sale: Once approved, the lender will provide the loan amount to the seller. You’ll then transfer ownership of the vehicle into your name.
  4. Make payments on your loan: Like a traditional auto loan, you’ll make monthly payments of principal and interest to the lender over the agreed loan term, usually 3-6 years.

Alternatives to Private Party Auto Loans

While buying a used car from a private seller has many benefits, it’s just not always possible for everyone for whatever reason.

Depending on your situation, one of these alternatives may be a better fit:

Dealership Financing

Getting an auto loan through a dealership can sometimes yield lower interest rates than private party loans, especially if you have great credit. However, you’ll pay more for the vehicle itself and enjoy the process less than compared to a private seller.

Personal Loan

Some borrowers use a personal loan from a bank, credit union, or online lender to fund a private party car purchase. Personal loans don’t use the vehicle as collateral, but rates are often higher than auto loans.

Home Equity Loan/HELOC

If you have sufficient home equity, you can use a home equity loan or line of credit to get a lump sum for purchasing a vehicle. These secured loans tend to have lower rates but put your home at risk.

Cash Purchase

The simplest option is saving up enough cash to pay the private seller the full amount upfront and avoid a loan altogether. This eliminates interest charges but requires patience.


Instead of purchasing a used vehicle, you could opt to lease a new vehicle from a dealership. Leases typically require little or no down payment and have lower monthly payments than financing.

Factors to Consider When Shopping for a Private Party Loan

When evaluating different private party auto loan options, there are several key factors to keep in mind:

Interest Rates: Private party loan rates are typically higher than dealer-sourced financing, often starting around 5-7% APR for qualified borrowers. Those with lower credit scores can expect even higher rates.

Fees: Many lenders charge fees like an origination fee or prepayment penalties. Be sure to understand all the fees involved.

Loan Term: Longer loan terms (5-7 years) will have lower monthly payments but more interest paid over the life of the loan. Shorter terms (3-4 years) have higher payments but less total interest.

Age/Mileage Restrictions: As we mentioned above, most lenders have limits on the age and mileage of vehicles they’ll finance through a private party loan, such as no more than 8-10 years old or 100,000 miles.

Down Payment: Some lenders require a down payment, often 10-20% of the vehicle’s value. This reduces the loan amount and total interest paid.

Credit Score Requirements: Better credit scores (700+) qualify for the lowest possible interest rates. Lenders have varying minimum score requirements.

Additional Considerations

Beyond the loan itself, there are a few other factors to keep in mind when buying a used car from a private party:

  • Vehicle History Report: Always obtain a vehicle history report like CARFAX to check for past accidents, ownership history, open recalls, etc. Private parties are harder to hold responsible for misrepresentations.
  • Vehicle Inspection: Have the car inspected by a mechanic you trust before finalizing the purchase.
  • Title Transfer: You’ll need to properly transfer the vehicle’s title into your name through your state’s DMV on your own because there isn’t a dealer to do it for you.
  • Auto Insurance: Get insurance lined up before taking ownership of the vehicle.

Private Party Auto Loans With Bad Credit

Some lenders that may approve private party auto loans for bad credit borrowers include myAutoloan, Auto Credit Express, Autopay, and certain credit unions like PenFed and Digital Federal Credit Union.

However, requirements like minimum income and down payment will likely apply.

My Final Thoughts

I can only hope I answered all your questions about Private Party auto loans along with offering you an extensive list of some of the top banks and lenders that offer them to get you started.

Remember: Like any type of financing, its not always for everyone and you should always do your own research and due diligence before committing to any long term financial obligations.

Sources For This Article

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Picture of Steve Momot - Author

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.


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