Stupid Auto Loan Question

I do all my banking through a credit union and have for a few years. I finally found a car I really want but it's being sold private party and not through a dealer. I know the person selling it so I am not worried about it being a piece of junk, but my question is do credit unions/banks usually give out auto loans for private sales? I feel stupid having to ask, but all I have ever got was cars from a dealer so I am not sure. Would it be something I would have to call and ask my credit union as it varies with different Cu/Banks?


Thanks for any help on my stupid question.


Kevin

Not positive, but pretty sure they do.

Yes. I've gotten a loan for an auto through a private sale.

Also just a food for thought, if you can(depending on your credit score) and the price of the vehicle I would try to take out a personal loan. This way you don't have to pay full coverage, because if you take out an auto loan you'll have to maintain full coverage on the vehicle and depending on your age it can be pretty expensive.

Credit Unions are pretty good about giving loans out in general, at least I know mine is. Good luck.

I have a pretty decent credit score for my age anyways. I wonder if they would be able to do that. They might not be able to though because I already have one personal loan out through them so I am not sure. Also aren't personal loans non-secured where as auto loans are secured which is why they are harder to get?


I will be stopping by the credit union tomorrow to talk to them and see what my options are but I want to be mentally equipped for everything.

I actually like the idea of being able to have the personal loan if I can because if I can get the car cheap enough I want to be able to get about $3-500 more so I can get some summer tires for it since it's sitting with studded snows on right now.

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Originally Posted by kevinb

I have a pretty decent credit score for my age anyways. I wonder if they would be able to do that. They might not be able to though because I already have one personal loan out through them so I am not sure. Also aren't personal loans non-secured where as auto loans are secured which is why they are harder to get?


I will be stopping by the credit union tomorrow to talk to them and see what my options are but I want to be mentally equipped for everything.

I actually like the idea of being able to have the personal loan if I can because if I can get the car cheap enough I want to be able to get about $3-500 more so I can get some summer tires for it since it's sitting with studded snows on right now.

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Personal loan has a higher interest rate, but there are catches to auto loan. If I'm not mistaken there is a 5 year or it may be 10 to where nobody will give you an auto loan if the car is older than that. I think it's 10, but just another thought for you. The car and personal loan are generally non-secure, meaning you don't have to put anything valuable in case you don't finish through with the payments. I think secure loans have a lower interest rate. Either way though, good luck.

I never thought about the age being a factor. It's a 2002 Subaru WRX that I am looking at. So it's almost 12 years old. I will have to see what they can do for me.


Thanks for the help,

Kevin

Quote:

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Originally Posted by kevinb

I never thought about the age being a factor. It's a 2002 Subaru WRX that I am looking at. So it's almost 12 years old. I will have to see what they can do for me.


Thanks for the help,

Kevin

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I can guarantee you they won't give you an auto loan for sure. I think some are 5, then some are 7. The oldest I want to recall seeing was 10 years, so you'll have to do some type other loan. Sorry to be the bad news bringer.

I'm not sure, they might because I just looked up there loan rates and there is a specific section for auto loans from 2002-2005 so I am not sure?


Here is a link to show you what I mean.


http://sfcuonline.org/pdfs/LoanInfoSheet.pdf

Quote:

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Originally Posted by kevinb

I'm not sure, they might because I just looked up there loan rates and there is a specific section for auto loans from 2002-2005 so I am not sure?


Here is a link to show you what I mean.


http://sfcuonline.org/pdfs/LoanInfoSheet.pdf

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I can't open it but maybe they may make an exception from a dealer, but for a private I highly doubt it. Regardless though, it's worth a shot.

I'll see what they can do for me. Like I said I have done ALL my banking through them and never missed a payment on anything through them. I have paid off a few loans through them too so I hope they will be able to work with me.

I've both sold and bought vehicles through a private individual that was financed through a credit union. Shouldn't be a problem. If you have good credit and the car's value is within their guidelines, why would they care who they are cutting the check to?

Quote:

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Originally Posted by Don

I've both sold and bought vehicles through a private individual that was financed through a credit union. Shouldn't be a problem. If you have good credit and the car's value is within their guidelines, why would they care who they are cutting the check to?

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Because they go by a general guide. An older car means more miles, more miles means more $$ for maintenance. If the person can't afford the maintenance who's to stop them from paying the note. All these factors add up which is why they have teh 5-7-10 year old car rule. With a dealership it's possibly avoidable though I tried it back when I wanted a '02 Trans Am-WS6 and this was in 2011. They wouldn't budge on the 5 year limit. I had even banked with this company for years and years prior. They care because this could be a loss of profit for them if the person didn't want to finish paying the note. They don't have a value guideline either btw.

Credit unions are a little more flexible. Guess my experience is a little different than yours. Kevinb, I'd go ahead and apply. All they can say is no.