How to get private party auto loans?

Saturday, January 10th, 2009 at 21:09

Ben asked:

I had an identity theft and my credit was Propecia buy shot. When I needed to get my first auto loan recently (I had always paid cash) I put a bunch down at a relatively high rate.

I'd like to get a more expensive car from a private party in about 15-18 months after I pay off my current auto loan (from a dealership) early. What type of FICO score do I need to get an auto loan to buy a car from an individual rather than a dealer? Does a perfect record on my current auto loan count, even if I don't fix any of my other credit?

Reply:

Auto finance is what I do for a living and if you are going to purchase a vehicle from a individual, you must get your own money from a bank.

They will base the approval on the same things that dealer lenders do which are;

1. LTV (loan to value).
2. Term requested.
3. Age of vehicle.
4. Miles on vehicle.
5. Time on job.
6. Time at residence.
7. Down payment amount.
8. Monthly income before taxes.
9. Credit score/profile.
10. Debt to income ratio.

Most private banks loan only N.A.D.A. loan value which is far less then wholesale or retail. So you will most likely need a large down payment.

As far as your previous car loan, yes the banks will take the pay history into consideration when they look at your application.

Source(s):

Finance Manager for a car dealer for over 7-years.

Finance your car here onsite if you need help buying one of these beauties :)