Wells Fargo and LightStream offer financing for used cars and trucks a buyer purchases from a private party, but as of 2015, the interest rate for financing a private party vehicle is more expensive. Some vehicle owners are also willing to provide financing to qualified buyers.
Customers with an established banking relationship should check with their bank about the possibility of financing. Many banks offer a lower annual percentage rate for loans to customers than to non-customers. The amount the bank allows the consumer to borrow depends on his credit rating and the vehicle under consideration.
Consumers usually find the best deals on vehicle loans by shopping around. Even if the buyer is considering a used truck from a dealer, he should check for financing before shopping for the truck. Buyers who have financing in hand before shopping have more options and bargaining power. An increase of 2 percent in the interest rate can add $500 to the total paid over the life of the loan.
Local banks often reserve their loans for consumers with pristine credit. If a buyer has one or more blemishes on his record, finding financing for a privately owned vehicle is more difficult. If the buyer exhausts options for financing a private party vehicle, buying from a dealer with guaranteed financing sometimes becomes his only option.