Do banks finance private car sales?

Like other types of auto loans, private-party car loans are offered by some banks, credit unions and online lenders. But beware — private-party auto loans tend to have higher interest rates than traditional auto loans.

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Also question is, can you buy a car from someone who still owes money?

You can sell to a dealer from whom you also want to buy a car. … If you sell a car you still owe money on to a private party, you’ll have to alert the buyer about the lien. When you come to an agreement with the buyer, you must pay off your lender immediately and then transfer ownership to the buyer.

Similarly, can you pay off a car loan early? Some lenders charge a penalty for paying off a car loan early. The lender makes money from the interest you pay on your loan each month. Repaying a loan early usually means you won’t pay any more interest, but there could be an early prepayment fee.

Just so, can you use a personal loan as a down payment on a car?

You can’t use a personal loan as a down payment on your next auto loan, but there are other options to consider if you’re not sure how to come up with a down payment. Personal loans are great for credit-building since they’re an installment loan, but most subprime lenders don’t allow you to use one for a down payment.

Does Wells Fargo do private party auto loans?

No private-party auto loans: You cannot use a Wells Fargo auto loan to buy a car from a private seller. No auto refinancing: Because Wells Fargo only offers auto loans through dealers, it does not offer auto loan refinancing or other types of car loans, including private-seller car loans and lease buyouts.

Is getting a loan for a car a good idea?

Whether it’s a good idea to finance a car depends on your own financial situation. If you pay cash, you could avoid paying interest and any loan fees. … If you don’t make a down payment and finance the entire cost of the car, you could find yourself owing more than your car is worth within a year or two.

Is it better to get a private loan for a car?

Most personal loans are provided without any restrictions on what the money is used for. … In most situations, an auto loan is preferable to a personal loan when buying a car, This is true for a few simple reasons: It is easier to qualify for an auto loan. Your interest rate will likely be lower.

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