A private-party auto loan is a type of car loan that can be used to finance a car purchase from an individual seller rather than a dealership. You can typically find these loans at banks, credit unions and online lenders. Many lenders place limitations on the age and mileage of the vehicle you’re planning to purchase if you’re taking out a loan.
Typically, lenders charge higher rates for these used car loans since they tend to view these purchases as riskier investments. Unlike dealerships, private sellers won’t necessarily keep the car in good condition or get it inspected.