Best Private-Party Auto Loans in 2025

Borrow money to buy a car from a private seller

Headshot of Lauren Nicholson
Written by
Lauren Clifford
Updated on: June 17, 2025

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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LenderBest for…Starting APRsLoan termsLoan amounts
Multiple discounts5.49% (with discounts)Up to 84 monthsUp to 130% of the car’s valueSee Personalized Results
MyAutoLoan logoPeople with fair credit6.49%Up to 84 monthsStarting at $8,000See Personalized Results
Navy Federal Credit Union logo #1People with military connections4.99%Up to 72 monthsStarting at $250See Personalized Results
PenFed Credit Union logo #1Expensive cars4.99%36-84 monthsUp to $150,000See Personalized Results
PNC Bank logo #1In-person service5.59%Not specified$5,000-$100,000See Personalized Results
Southeast Financial Credit Union logo #1Older or high-mileage cars4.00%12-84 monthsUp to $100,000See Personalized Results
Read more about how we chose the best private-party auto loans.

Best lenders for private-party auto loans

Digital Federal Credit Union: Best for multiple discounts

5.49% (with discounts)

Up to 84 months

Up to 130% of the car’s value

Not specified

Pros
  • Discounts for fully electric vehicles and having a DCU account with direct deposit
  • Borrow up to 130% of the value of the car you’re buying
  • Same rates for new and used cars
Cons
  • Need to become a member to finalize loan
  • Can take more than two to three days to get your money

What to know

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Digital Federal Credit Union (DCU) car loans come with low starting rates, as well as discounts for electric cars and maintaining a connected DCU bank account with direct deposit. Plus, DCU offers the same rates for used and new cars, which could help you save on your private-party car loan. Many other lenders charge higher rates for used car loans.

However, you’ll need to look elsewhere for an instant auto loan. You’ll have to become a DCU member to borrow money, which will add about five minutes to your application process. Plus, getting your check once you’ve signed your loan paperwork will take two to three days.

The rates listed are for DCU’s used car loans; DCU’s private party car loan rates may differ.

How to qualify

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You must be a DCU member to take out a loan. To join, you must open a DCU savings account with a deposit of at least $5 and meet one of the following requirements:

  • Live, work, worship or go to school in certain Massachusetts communities
  • Work for a participating employer
  • Join a participating association (annual dues between $10 and $120)
  • Have a family member who is already a DCU member
See Personalized Results Read Our Expert Review

myAutoLoan: Best for people with fair credit

6.49%

Up to 84 months

Starting at $8,000

600

Pros
  • Low minimum credit score requirement
  • Allows co-borrowers
  • Shares what you need to qualify (e.g., income and credit score)
Cons
  • Restrictions on car age and mileage
  • Need to borrow at least $8,000
  • Not available to residents of Alaska or Hawaii

What to know

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Instead of directly offering loans, myAutoLoan connects people looking for car loans with car lenders. Because it’s possible to qualify with a score as low as 600 and apply with a co-applicant, myAutoLoan may be a good fit if your credit isn’t perfect.

Still, myAutoLoan’s partner lenders do require that you borrow at least $8,000, so look at lenders like Navy Federal Credit Union and PNC if you need a smaller car loan.

How to qualify

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You’ll need to meet these criteria to qualify for an auto loan on myAutoLoan’s network:

  • Age: 18+
  • Credit score: 600+
  • Minimum income requirement: $21,600 annual gross income
  • Residency requirements: Can’t live in Alaska and Hawaii
  • Vehicle requirements:
    • Car age: 10 years old or newer
    • Mileage: Maximum 125,000 miles
See Personalized Results Read Our Expert Review

Navy Federal Credit Union: Best for people with military connections

4.99%

Up to 72 months

Starting at $250

Not specified

Pros
  • Rate discounts for active-duty/retired military members
  • Great for small car loans
  • Allows for co-applicants
Cons
  • Limited to borrowers with ties to the military
  • Must become credit union member to close on loan
  • Preapprovals not available for private-party sales

What to know

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If you’re a current or former member of the military (or related to someone who’s served), you may qualify for membership at Navy Federal Credit Union. NFCU offers active-duty and retired military members a 0.25% APR discount, offers loans for private-party car purchases and allows for co-applicants.

Unfortunately, Navy Federal Credit Union doesn’t offer auto loan preapprovals for private car sales. This means that you can’t view potential rates and terms until you formally apply for a loan.

The rates listed are for Navy Federal’s used car loans; Navy Federal’s private party car loan rates may differ.

How to qualify

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Navy Federal Credit Union doesn’t provide insight into its criteria around what vehicles you can finance or what credit requirements you’ll need to meet.

To become a member, though, you’ll need to fall into one of the following criteria:

  • Active duty members of the military (regardless of branch)
  • Veterans, retirees and annuitants
  • Those in the Delayed Entry Program (DEP)
  • Department of Defense (DoD) Officer Candidates and ROTC
  • DoD Reservists
  • DoD civilian personnel
  • Immediate family of military members, as well as household members

You’ll need to meet the following requirements:

  • Administrative: Provide your Social Security number, home address, credit card or bank account number and a form of government identification
  • Membership: Create a Membership Savings Account and maintain a $5 balance to join and continue membership in the credit union
See Personalized Results Read Our Expert Review

PenFed Credit Union: Best for expensive cars

4.99%

36-84 months

Up to $150,000

Not specified

Pros
  • Borrow up to $150,000 (lenders typically only offer up to $100,000)
  • Check rates without hurting your credit
  • Borrow up to 125% of the value of the car
Cons
  • Need to become a member to close on loan
  • Restrictions on car mileage

What to know

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PenFed Credit Union allows consumers to prequalify for a private car loan, a service not all lenders provide — this means you can check your rates without impacting your credit. PenFed also offers up to 125% financing and loan amounts up to $150,000.

But as with all credit unions, you’ll need to become a member before you can close your loan with PenFed. Further, 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.

The rates listed are for PenFed’s used car loans; PenFed’s private party car loan rates may differ.

How to qualify

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To qualify for a PenFed auto loan, you must meet the following requirements:

  • Membership: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with $5 deposit (may need to submit documents to verify your identity and income)
  • Mileage restrictions: Up to 125,000 miles
See Personalized Results Read Our Expert Review

PNC: Best for in-person service

5.59%

Not specified

$5,000-$100,000

Not specified

Pros
  • Branch visit may offer a more personalized experience
  • Allows co-applicants
  • 0.25% autopay discount
Cons
  • Restrictions on car age and mileage
  • Have to visit PNC branch to get a private-party car loan

What to know

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To get a private-party auto loan from PNC Bank, you’ll need to visit a branch in person. While some people prefer to do everything online, others like visiting a bank to get more personalized customer service.

To get a private-party car loan from PNC, the car must have a model year between 2017 and 2026 and a maximum of 80,000 to 100,000 miles (depending on your credit).

The rates listed are for PNC’s used car loans; PNC’s private party car loan rates may differ.

How to qualify

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To get a car loan from PNC, you have to meet the following criteria:

  • Administrative: PNC Bank doesn’t offer prequalification. If you want to check rates, you’ll have to take a hard credit hit.
  • Application process: You’ll need to go to a branch to get a private-party auto loan. Currently, PNC has branches in 27 states and Washington, D.C.
  • Car requirements: The vehicle must have a model age of 2017 to 2026 and maximum of 80,000 to 100,000 miles.
  • Membership: You don’t need to be a PNC customer to get a loan.
See Personalized Results Read Our Expert Review

Southeast Financial Credit Union: Best for older or high-mileage cars

4.00%

12-84 months

Up to $100,000

600

Pros
  • No limits on model year
  • No mileage restrictions
  • Doesn’t increase rates for private-party loans
Cons
  • Need to become a credit union member to close on loan
  • Branches limited to Tennessee

What to know

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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. Southeast Financial also offers short-term auto loans and doesn’t increase rates if you’re taking out a private-party car loan.

However, Southeast Financial’s branches are limited to Tennessee — so look elsewhere if you need in-person customer service.

How to qualify

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You must have a credit score of at least 600 to qualify for an auto loan. You’ll also need to join the credit union before you can borrow.

All Southeast Financial members must open a savings account with a deposit of at least $5. To become a member, you must meet one of the requirements below:

  • Be a current employee or retiree of a Southeast Financial Select Employee Group
  • Live, work, worship or go to school in certain parts of Tennessee, Kentucky or Mississippi
  • Be related to a current Southeast Financial member
  • Make a $5 donation to Autism Tennessee
See Personalized Results Read Our Expert Review

What is a private-party auto loan?

A private-party auto loan is a type of car loan you can use to buy a car from an individual seller, rather than a dealership.

Lenders often limit the age and mileage of the car and charge higher interest rates for used car loans for private sales, as these purchases are riskier.

Unlike dealerships, private sellers won’t necessarily keep the car in good condition or get it inspected before listing it for sale.

On this page

What to know about private-party auto loans

A car loan for a private sale works differently than a traditional auto loan for a car you buy at a dealership. Here are some details to keep in mind when considering a private-party loan.

  • Choose your car before taking out a loan. As part of your private-party auto loan application, lenders typically make sure the vehicle you’re planning to buy meets their criteria. You’ll have to provide information like the vehicle identification number (VIN), make, model and mileage.
  • Prepare for potentially higher auto loan rates. Because a used car from a private seller may not have a history of regular maintenance and won’t come with a warranty, lenders often inflate the rates they charge to offset their risk.
  • Avoid dealer fees, but miss out on support. While buying from a private seller lets you skip unnecessary dealer fees, you’ll have to handle all of the paperwork yourself. Dealerships can help you with your auto loan application, car title, registration and sales tax. You should also run a VIN check and get the car inspected before buying it — things that dealers typically do for the cars on their lots.
  • Wait for the seller to pay off any existing liens on the car. If there’s an existing loan on the car you want to buy, this can complicate the sale. The seller will generally be responsible for handling the loan payoff and clearing the lien from the vehicle title, but this may add time to the process.
  • Provide the vehicle documentation to your lender. This may include documents like the title, registration, paperwork on any current liens on the car, the bill of sale and the VIN.
  • Manage the title transfer, registration and sales tax yourself. You’ll ultimately be responsible for handling all the paperwork that dealers typically take care of. Be sure to avoid buying a car without a title.

Expert insights on car loan rates

Matt Schulz LendingTree chief consumer finance analyst headshot

Matt Schulz

Chief consumer finance analyst

“Auto loan rates have fallen in recent months, thanks to rate cuts from the Federal Reserve, but that trend may end. The Fed has stopped rate cuts for now.”

 

Will tariffs affect used car prices?

Tariffs are likely going to make car shopping more expensive and if you’re worried about prices, you’re not alone. According to a LendingTree survey, more than 3 in 4 (77%) Americans worry that tariffs will drive up the cost of owning a vehicle. Of those 77%, 40% plan to cut back on the amount they’re driving.

How to find a private-party car loan with LendingTree

Shopping around for an auto loan on LendingTree can save you an average of $5,198 over the life of your loan. Here’s how it works.

Number one icon

Tell us what you need

Take two minutes to tell us who you are and how much money you’ll need. We’ll take care of the rest. It’s free, simple and secure.

Number two icon

Shop your offers

We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.

Number three icon

Get your money

Choose an offer and work with the lender to finalize your loan. Some people see money in their accounts within 24 hours, depending on the lender they choose.

How to qualify for a private-party auto loan

  1. Check your credit. To get a car loan for a private sale, you typically need to meet a lender’s debt-to-income ratio and credit score requirements. There’s no universal minimum credit score to buy a car, but most people who qualify for car loans have scores above 660. Check your credit score for free with LendingTree Spring to make sure your credit is up to par.
  2. Check the lender’s requirements. Some lenders are clear about what kind of credit and income you need to qualify, and some even specify any car age and mileage restrictions. Check your preferred lender’s website to see if they publish this information.
  3. Prequalify. While some lenders don’t list their requirements upfront, they may let you check your eligibility by prequalifying for a car loan. You’ll see the potential APRs, terms and amounts you could qualify for without taking a hit to your credit.

Are there private-party auto loans for bad credit?

Yes. Even if your credit score needs work, it’s possible to find car loans for bad credit.

As with all bad credit loans, you’ll face higher interest rates than borrowers with the strongest credit would. If you have the time to spare, working to improve your credit score before you apply can save you money. Even raising your score from “fair” to “very good” could save you $2,316 on your car loan.

Private-party auto loans vs. alternatives

You may not be able to get a car loan for a private sale if the car has high mileage, a salvage title or costs less than the lender’s minimum loan amount. If that’s the case, consider these alternatives to cover your car purchase:

 Take out a personal loan

You can use a personal loan to buy a car, as lenders are typically flexible in how you can use loan money. Personal loans are also typically unsecured, meaning you won’t have to use your car as collateral, but interest rates tend to be higher. Like auto loans, personal loans come in lump sums and have fixed interest rates.

You can get a personal loan from lenders like LightStream and U.S. Bank to fund your private-party car purchase.

 Lease a car

Leasing a car is typically cheaper than buying one, but you won’t own the car at the end of the lease. If you decide you want to keep the car, you can get a lease buyout loan to purchase the car at the end of the lease term.

 Pay in cash

It can take time to save enough money to buy a car with cash, but this strategy can save you money on interest and fees. This is an especially good option if you have bad credit, as lenders typically charge high interest rates to borrowers with poor credit scores.

How we chose the best private-party auto loans

We examined more than 30 auto lenders that offer private-party auto loans at competitive rates to select the top six lenders. We considered the following criteria:

  • Accessibility: We chose lenders with auto loans that are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification, preapproval and application processes.
  • Rates and terms: We prioritize lenders with more competitive starting fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our systematic rating and review process, the best private-party auto loans come from Digital Federal Credit Union, myAutoLoan, Navy Federal Credit Union, PenFed Credit Union, PNC Bank and Southeast Financial Credit Union.

Frequently asked questions

In some ways, private-party auto loans work the same as regular auto loans. You’ll apply for your car loan and answer questions about yourself and the car you want to buy. The lender will check to make sure you and the car meet their requirements. If you do, the lender will make you an offer and you’ll sign a loan agreement and get your money to buy the car.
 
The main difference between a private-party auto loan and one from a dealership is that you’ll handle all of the paperwork yourself, including the title transfer, registration and sales tax.

Yes. Most lenders allow you to use loan money for almost anything (except illegal activities and secondary education), so you can use a personal loan to buy a car. Learn more about how you can use a personal loan.

If by private loan you mean personal loan, then no — it usually isn’t better to get a personal loan to buy a car. Auto loans tend to come with lower rates than personal loans because they’re secured with the car you’re buying. Lower rates mean more money in your pocket.
 
Using a personal loan to buy a car can be quicker, since there’s usually less paperwork involved. However, because they don’t require collateral, it’s typically a more expensive way to finance.