Best Private-Party Auto Loans in 2024

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.

While Southeast Financial Credit Union doesn’t disclose its credit criteria, it does outline its membership criteria:

 
AND meet one of the following conditions

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.

To get a Navy Federal private-party auto loan, you’ll need to have one of the following military affiliations:

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.

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:

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.

To get a PNC Bank auto loan, you’ll need to meet this lender’s credit score, income, credit history and debt-to-income ratio criteria. However, PNC Bank doesn’t share specific details about its qualification requirements.

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.

LightStream will only consider borrowers with good or excellent credit for auto loans. This lender also considers factors like your income, years of credit experience, value of assets and debt-to-income (DTI) ratio.

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: