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.