Best Private-Party Auto Loans in 2025

Checking rates won't impact your credit score

Amanda_Push
Written by
Amanda Push
Updated April 14, 2025
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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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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.

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.
LendersBest for…Starting APRsLoan termsLoan amounts
LightStream logo #1Unsecured auto loans6.74% (with autopay)24-84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000-$100,000
Borrowers with fair credit6.49%24-72 monthsStarting at $8,000
Navy Federal Credit Union logo #1Borrowers with military ties4.99%36-96 monthsStarting at $250
PenFed Credit Union logo #1Prequalified car loans5.59%36-84 monthsUp to $150,000
PNC Bank logo #1In-person service8.19% (with autopay)12-84 months$5,000-$100,000
Southeast Financial Credit Union logo #1Older or high-mileage cars4.00%12-84 monthsUp to $100,000

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Read more about how we chose the best private-party auto loans.

Best lenders for private-party auto loans

LightStream: Best for unsecured auto loans

(482)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

(482)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

6.74% (with autopay)

$5,000-$100,000

24-84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Not specified

Pros
  • Doesn’t charge any fees
  • Offers rate discount for signing up for autopay
  • May offer same-day funding (conditions apply)
Cons
  • 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

What to know

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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. With a LightStream auto 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.

Eligibility requirements

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LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:

  • At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
  • Stable income and the ability to handle paying their current debt obligations
  • Savings, whether in a bank account, investment account or retirement account

    •  
    You must also have a valid Visa or Mastercard credit card to accept your loan, but only for verification purposes. LightStream will not charge your card.

    See Personalized Results Read Our Expert Review

    myAutoLoan: Best for borrowers with fair credit

    6.49%

    Starting at $8,000

    24-72 months

    600

    Pros
    • Low minimum credit score requirement
    • Allows co-borrowers
    • Provides clear eligibility requirements for applicants
    Cons
    • Must borrow at least $8,000
    • Not available to residents of Alaska or Hawaii
    • Higher rates on private-party loans

    What to know

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    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.

    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.

    Eligibility requirements

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

  • Credit score: 600+
  • Minimum income requirement: $21,600 annual gross income
  • Residency requirements: Can’t live in Alaska and Hawaii
    • See Personalized Results Read Our Expert Review

    Navy Federal Credit Union: Best for borrowers with military ties

    4.99%

    Starting $250

    36-96 months

    Not specified

    Pros
    • Active-duty/retired military members can qualify for APR discounts
    • Offers wide range of loan amounts and loan repayment terms
    • 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 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.

    Eligibility requirements

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    Navy Federal Credit Union doesn’t provide insight into its criteria around what vehicles you can refinance and 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 prequalified car loans

    5.59%

    Up to $150,000

    36-84 months

    Not specified

    Pros
    • Borrowers can prequalify for a loan with no credit impact
    • Offers up to 125% financing
    • Large loan amounts of up to $150,000
    Cons
    • Must become credit union member to close on loan
    • Unclear credit eligibility requirements
    • Vehicles must have fewer than 60,000 miles to qualify for 84-month loan terms

    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 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.

    Eligibility requirements

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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
    • See Personalized Results Read Our Expert Review

    PNC Bank: Best for in-person service

    8.19% (with autopay)

    $5,000-$100,000

    12-84 months

    Not specified

    Pros
    • Offers a wide range of loan terms
    • Provides 0.25% autopay discount
    • Branch visit may provide a more personalized experience
    Cons
    • High rates for small loan amounts
    • Unclear eligibility requirements
    • Must borrow at least $5,000

    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 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.

    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.

    Eligibility requirements

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    PNC Bank doesn’t offer prequalification. If you want to check rates, you’ll have to take a hard credit hit.

    You can formally apply online for most of PNC’s auto loans. However, if you’re getting a private-party auto loan, you need to go to a branch. Currently, PNC has branches in 27 states. Either way, you don’t need to be a PNC member to borrow.

    See Personalized Results Read Our Expert Review

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

    4.00%

    Up to $100,000

    12-84 months

    600

    Pros
    • Offers wide range of loan amounts and loan repayment terms
    • No limits on model year
    • No mileage restrictions
    • Doesn’t increase rates for private-party loans
    Cons
    • Must become 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. 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.

    Eligibility requirements

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

    All SFCU 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:

  • Make a $5 donation to Autism Tennessee
  • Be a current employee or retiree of a Southeast Financial Select Employee Group
  • Be related to a current SFCU member
  • Live, work, worship or go to school in certain parts of Tennessee, Kentucky or Mississippi
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    Trustpilot

    What is 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.

    Lenders often charge higher interest for used car loans for private sales because these purchases are considered riskier. Unlike dealerships, private sellers won’t necessarily keep the car in good condition or get it inspected.

    On this page

    What to know about private-party auto loans

    A car loan for a private sale works a little bit differently from a traditional auto loan for a car purchased at a dealership. Here are some details to keep in mind when considering this type of loan.

    • Choose your car before taking out a loan. As part of your private-party auto loan application, a lender will want to make sure the vehicle you’re planning to buy meets its criteria. This means 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 inflate the APRs 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 also miss out on the assistance dealerships can provide when buying a car. Dealerships can help you with your auto loan application as well as take care of your sales tax. On a private party sale, you’ll have to submit your sales tax to the appropriate state agency yourself.
    • Pay off any existing liens on the car. If there is 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 such as the title, registration, paperwork on any current liens on the car, the bill of sale and the VIN.
    • Manage the title transfer yourself. Your lender may help you with this part of the process, but you’ll ultimately be responsible for getting the title transferred. Be sure to avoid buying a car without a title.

    How to buy a private-party car with a loan

    If you’re applying for a private car 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:

     Determine your price range

    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.

     Choose your car

    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.

     Shop around for loans

    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:

    • The car’s year, make, model, VIN and mileage
    • Your name, address, Social Security number, contact details, employment information and income
    • Your desired loan amount and repayment term

     Close on your auto loan

    Choose your best private car 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.

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    How to qualify for a private-party auto loan

    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. Before submitting an application, check your credit score and credit reports to see which lenders you may qualify with.

    While some lenders don’t provide their requirements upfront, you can check your potential eligibility by seeing if you prequalify for a car loan. This will allow you to see the potential APRs, terms and amounts a lender may be willing to offer.

    Are there private-party auto loans for bad credit?

    Even if your credit score needs work, you can find lenders that offer 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 result in savings. You won’t go from subprime to super-prime in just a few months, but you might move into the approvable range and shave off a bit of your interest rate.

    Private-party auto loans vs. alternatives

    In some instances, you may not be able to get a car loan for a private sale. For instance, if the vehicle has high mileage, has a salvage title or costs less than the lender’s minimum loan amount, it may not be eligible for financing. Instead, consider these alternatives to cover your car expenses:

     Take out a personal loan

    Personal loans can be used to buy a car because lenders are typically flexible in how loan funds are used. 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.

     Lease a car

    If you can’t afford to buy a car, you may consider leasing a car instead. The monthly lease payments are likely to be less expensive than a loan payment, 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 vehicle 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 in fees. This may be a good option for consumers with bad credit.

    How we chose our picks for 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.

    Frequently asked questions

    No, not all banks offer private-party auto loans, including:
     

    • Bank of America
    • Capital One
    • Wells Fargo
    • Chase Bank

    Instead, these banks only offer car loans if you’re buying through dealers that they partner with.

    You can find private-party auto loans with the lenders below:
     

    • Digital Federal Credit Union (DCU)
    • LightStream
    • myAutoloan
    • Navy Federal Credit Union
    • PenFed Credit Union
    • PNC
    • Southeast Financial Credit Union
    • USAA
    • U.S. Bank

    If by private loan you mean personal loan, then no, it is not usually better to get a personal loan to buy a car. That is, if rates are your biggest concern. Some lenders (like LightStream and U.S. Bank) offer private party car loans, but their loans are technically personal loans, not traditional auto loans.
     
    Traditional auto loans use the car you’re financing as collateral and as a result, typically come with a lower rate. Using a personal loan to buy a car can be quicker (there’s usually less paperwork involved), but because they don’t require collateral, it’s typically a more expensive way to finance.