| Lenders | Starting APRs | Loan terms | Loan amounts | Best for… |
|---|---|---|---|---|
 | 4.75% | 12-84 months | From $12,000 | Older or high mileage cars |
 | 5.44% | 36-96 months | Not specified | Borrowers with military ties |
 | 6.79% | 36-84 months | Up to $150,000 | Prequalified car loans |
 | 7.49% | 24-72 months | From $8,000 | Borrowers with fair credit |
 | 8.49% | 12-84 months | $5,000-$100,000 | In-person service |
 | 9.24%* with autopay and excellent credit | 24-144 months | $5,000-$100,000 | Unsecured auto loans |
 | 9.39% | 48-72 months | From $7,500 | Borrowers who prefer large banks |
Read more about how we chose the best private-party auto loans.
| Starting APR | 4.75% |
| Loan amounts | From $12,000 |
| Loan terms | 12-84 months |
| Min. credit score | Not specified |
| Pros | Cons |
|---|---|
Flexible loan terms No limits on model year No mileage restrictions Doesn’t increase rate for private-party loans | Must become credit union member to close on loan Unclear credit requirements Branches limited to areas in Tennessee and Kentucky |
Southeast Financial Credit Union doesn’t place restrictions on the model year or mileage of cars it’s willing to finance, which can be useful if you’re looking for a cheap car from an individual seller. This lender also offers short-term auto loans and doesn’t increase rates if you’re taking out a private-party car loan.
However, if you prefer in-person service, Southeast Financial Credit Union’s branches are limited to just Tennessee and Kentucky. This lender disclose the minimum credit score it requires for auto loans, but credit unions tend to work with borrowers with a variety of credit profiles.
While Southeast Financial Credit Union doesn’t disclose its credit criteria, it does outline its membership criteria:
AND meet one of the following conditions
| Starting APR | 5.44% |
| Loan amounts | Not specified |
| Loan terms | 36-96 months |
| Min. credit score | Not specified |
| Pros | Cons |
|---|---|
Active-duty/retired military members can qualify for APR discounts Flexible loan terms Allows for co-applicants | Limited to borrowers with ties to the military Must become credit union member to close on loan Preapprovals not available for private-party sales |
If you’re a current or former member of the military or are related to someone who has served, you may qualify for membership at Navy Federal Credit Union. This lender offers active-duty and retired military members a 0.25% APR discount, provides financing for private-party car purchases and allows for co-applicants.
Unfortunately, auto loan preapprovals aren’t offered for borrowers buying a car from an individual seller. This means you can’t view potential rates and terms until you formally apply for a loan. Navy Federal also doesn’t specify its loan amounts.
To get a Navy Federal private-party auto loan, you’ll need to have one of the following military affiliations:
| Starting APR | 6.79% |
| Loan amounts | Up to $150,000 |
| Loan terms | 36-84 months |
| Min. credit score | Not specified |
| Pros | Cons |
|---|---|
Borrowers can prequalify for a loan with no credit impact Offers up to 125% financing Large loan amounts of up to $150,000 No prepayment penalties for paying off your loan early | Must become credit union member to close on loan Unclear eligibility requirements Vehicles must have fewer than 60,000 miles to qualify for 84-month loan terms |
PenFed Credit Union allows consumers to prequalify for a private-party auto loan, a service not all lenders provide. This means you can preview the rates you may qualify for without impacting your credit. This lender also offers up to 125% financing and loan amounts up to $150,000.
Like all credit unions, you’ll need to become a member before you can close your loan. If you’re applying for an 84-month auto loan, your vehicle will need to have fewer than 60,000 miles and must be no older than five years.
To qualify for a PenFed auto loan, your car must have fewer than 125,000 miles on it. You’ll need to meet the lender’s credit requirements, but PenFed doesn’t specify what credit scores it looks for.
Before you can close on the loan, you’ll also need to become a credit union member. While some credit unions have strict membership requirements, PenFed membership is open to everyone. You’ll just need to open a savings account and make a minimum deposit of $5.
| Starting APR | 7.49% |
| Loan amounts | From $8,000 |
| Loan terms | 24-72 months |
| Min. credit score | 600 |
| Pros | Cons |
|---|---|
Low minimum credit score requirement Allows co-borrowers Provides clear eligibility requirements for applicants | High minimum loan amount Not available to residents of Alaska or Hawaii Higher rates on private-party loans |
myAutoLoan isn’t a direct lender — rather, it offers multiple loan options through its network of lending partners for consumers looking to buy a car. Because its minimum credit score requirement is only 600 and myAutoLoan allows for co-applicants, this company may be a good fit for consumers whose credit isn’t perfect.
Like many lenders, myAutoLoan charges a higher APR on private-party auto loans. For example, a borrower with excellent credit may qualify for an APR as low as 6.43% on a used car purchased from a dealer, but private-party financing starts at 6.99% APR.
In order to qualify for the lowest rates offered in myAutoLoan’s marketplace, you’ll need to have a good credit score. Residents of Alaska and Hawaii aren’t eligible for a loan on this platform.
One of the advantages of myAutoloan is that the company provides clear eligibility requirements for its future borrowers:
| Starting APR | 8.49% |
| Loan amounts | $5,000-$100,000 |
| Loan terms | 12-84 months |
| Min. credit score | Not specified |
| Pros | Cons |
|---|---|
Offers a wide range of loan terms Provides 0.25% autopay discount Branch visit may provide a more personalized experience | High rates for small loan amounts Unclear eligibility requirements High minimum loan amounts |
To get a private-party auto loan from PNC Bank, you’ll need to visit a branch in person. While some consumers may prefer to do everything online, for others, visiting a bank to apply for a loan adds the personal touch they’re looking for.
However, PNC Bank rates for private-party auto loans can be much higher than what some other lenders charge. For example, the lowest rate on an older car that costs less than $10,000 may start as high as 15.04%. To qualify for this lender’s lowest private-party auto loan rate, you’ll need to have an excellent credit profile and be willing to finance at least $25,000.
| Starting APR | 9.24%* with autopay and excellent credit |
| Loan amounts | $5,000-$100,000 |
| Loan terms | 24-144 months |
| Min. credit score | Good to excellent credit |
| Pros | Cons |
|---|---|
Doesn’t charge any fees Offers rate discount for signing up for autopay May offer same-day funding (conditions apply) | Doesn’t offer prequalification Exclusive to those with good or excellent credit Rates on unsecured loans may be higher than loans secured by the vehicle |
Unlike many auto loan lenders, LightStream offers unsecured car loans. Most auto loans are secured, meaning that your vehicle serves as collateral to guarantee repayment. A LightStream auto loan, on the other hand, is similar to a personal loan — your eligibility is based solely on your creditworthiness. Some LightStream loans may be funded the same day you apply.
Unfortunately, LightStream doesn’t offer preapprovals, which means you’ll have to officially apply for a loan to see your rates and terms. If you have fair or bad credit, you likely won’t qualify for a private-party auto loan since LightStream only caters to those with good credit.
| Starting APR | 9.39% |
| Loan amounts | From $7,500 |
| Loan terms | 48-72 months |
| Min. credit score | Not specified |
| Pros | Cons |
|---|---|
Private-party auto loans available in all 50 states Preferred Rewards members may receive interest rate discount Rate offer is good for 30 days | High minimum loan amount Must be an online banking customer to qualify for a private-party loan Interest rate discount only available to Preferred Rewards members |
As one of the largest banks in the U.S., Bank of America offers accessibility to consumers in all 50 states and the District of Columbia. If you’re a Preferred Rewards member of Bank of America, you may qualify for a 0.25% or 0.50% interest rate discount, though the bar for membership is high.
If you’re looking to finance an inexpensive used car, you may need to look elsewhere as Bank of America only offers loans as small as $7,500. Private-party auto loans are only available to existing online banking customers, and this lender’s starting APR is higher than many other lenders on this list.
Bank of America’s minimum credit score requirement is not disclosed, but you’ll need to meet the following criteria to qualify for a private-party auto loan:
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.
If you’re applying for a private-party auto loan, you’ll need to choose the vehicle you’re going to buy before getting your loan. Here’s what you need to know about the process:
Check your credit score and use an auto loan calculator to figure out what you can afford. Be sure to budget for expenses like auto insurance, registration and maintenance so you know that your monthly payment won’t strain your wallet.
With your budget in mind, you can begin your car search. Whether you’re buying a car on Craigslist or thumbing through used car websites, remember to ask for a vehicle history report to learn about the car’s history. If you find a car you like, take it for a used car inspection to be sure the vehicle is running properly and won’t require hefty repairs.
After negotiating the car’s price, apply to a few lenders. Private-party auto loan rates tend to have higher rates than vehicles bought from a dealership, which makes it even more important to secure the lowest rate you qualify for. When you fill out an application, you’ll need the following information:
Choose your best private-party auto loan offer and follow through with the paperwork. Your lender can help you finalize the loan and get the money to the seller. Once you’ve paid for your car, you’ll need to transfer the car title.
