Credit question - who will offer a loan for a car made in 1996 to be purchased from a private party?

[notfred]

Anyone know any bank or anything that will offer a loan for a car made in 1996 that's not being purchased from a dealer?

 

[RossMAN]

Any financial institution should be able to underwrite this used car loan provided:

1) The current vehicle's owner has possesion of the title and issues a bill of sale.
2) You qualify credit and income wise.

I would first apply for a loan where you bank since they "know you" (or at least have records of your current deposit accounts and loans).

Next I would try a local credit union which underwrites loans like this all the time.

I was in a similiar situation to yours last year. Honda Finance was charging me 8.5% (maybe 10.5%). So after 1 year of on time payments I saw an ad for "4.75% APR" car loans at a downtown credit union where I was NOT A CUSTOMER of theirs. I told them I will join the CU if I can apply and they give me a credit decision. The next day I got a call stating I was approved, I deposited $5 to open a savings account, signed loan docs, done.

 

[notfred]

My bank (Washington Mutual) says they will only offer loans on cars four years old or newer, purchased from a dealer (see link. I also went to lendingtree.com to see if they could find something for me, but they wont even accept applications for cars older than the 1997 model year.

 

[NutBucket]

Credit Union is a good place to look. If you're desperate just look into a personal loan, or something similar. You won't get as good of a rate, but you'll get the loan. That's what my friend did when he totaled his car. Took out like $4k at 10%, paid it off in 2-3 months.

 

[krunchykrome]

Shop around at different banks.
Some banks might give you the loan, some might not.
It all depends on your credit....and....some banks wont give loans for cars under a certain year. For example, my bank will not give a used car loan to any vehicle under 2000.

 

[vi edit]

Like others have said a locally operated credit union is your best bet. I've financed older cars with my credit union several times in the past. You just end up paying more interest. Don't expect to get a low rate. It will probably be in the vicinity of 9% or 10%.

 

[Electric Amish]

Credit Union. That's where I got the loan for my 1994 S-10.

 

[RossMAN]

Originally posted by: notfred
My bank (Washington Mutual) says they will only offer loans on cars four years old or newer, purchased from a dealer (see link. I also went to lendingtree.com to see if they could find something for me, but they wont even accept applications for cars older than the 1997 model year.

I just picked a random CA credit union and called them, here's how the conversation went:

Ross: Please transfer me to your loan department.
CU: One moment please.
CU: Hi my name is Robin, how can I help you?
Ross: Do you offer used auto loans?
CU: Yes we do.
Ross: But what if the collateral is a 1996 car owned by another private party?
CU: We do those all the time. The current owner should come with you and visit a local branch with the title and bill of sale. Since it's 1996 you will not receive a new car rate but a used car rate.
Ross: Thank you very much and have a nice day.

Call a local CU.

 

[Kelvrick]

Originally posted by: RossMAN

Originally posted by: notfred
My bank (Washington Mutual) says they will only offer loans on cars four years old or newer, purchased from a dealer (see link. I also went to lendingtree.com to see if they could find something for me, but they wont even accept applications for cars older than the 1997 model year.

I just picked a random CA credit union and called them, here's how the conversation went:

Ross: Please transfer me to your loan department.
CU: One moment please.
CU: Hi my name is Robin, how can I help you?
Ross: Do you offer used auto loans?
CU: Yes we do.
Ross: But what if the collateral is a 1996 car owned by another private party?
CU: We do those all the time. The current owner should come with you and visit a local branch with the title and bill of sale. Since it's 1996 you will not receive a new car rate but a used car rate.
Ross: Thank you very much and have a nice day.

Call a local CU.

For some reason, I just think that Robin already knew it was you and there were more parts of that conversation like "Rossman, getting another car? Would you like to apply for our frequent loaner program?" and such and such.

 

[Mr N8]

Originally posted by: Kelvrick

Originally posted by: RossMAN

Originally posted by: notfred
My bank (Washington Mutual) says they will only offer loans on cars four years old or newer, purchased from a dealer (see link. I also went to lendingtree.com to see if they could find something for me, but they wont even accept applications for cars older than the 1997 model year.

I just picked a random CA credit union and called them, here's how the conversation went:

Ross: Please transfer me to your loan department.
CU: One moment please.
CU: Hi my name is Robin, how can I help you?
Ross: Do you offer used auto loans?
CU: Yes we do.
Ross: But what if the collateral is a 1996 car owned by another private party?
CU: We do those all the time. The current owner should come with you and visit a local branch with the title and bill of sale. Since it's 1996 you will not receive a new car rate but a used car rate.
Ross: Thank you very much and have a nice day.

Call a local CU.

For some reason, I just think that Robin already knew it was you and there were more parts of that conversation like "Rossman, getting another car? Would you like to apply for our frequent loaner program?" and such and such.

No, that's the way it would work at the bank that I work for, too. Local banks and credit unions are usually more likely to work with you than the national corps.

 

[Vic]

My credit union (the largest in Oregon) will do it for up to 60 months at 3.99%

edit: and they'll finance up to 100% of the car's high book value. Private party or dealer does not matter.

 

[KK]

If you can't find a bank to give you a loan for that car. You can do a personnel loan, which is unsecured for a higher percentage. Of course before doing that, I'd take up one the the solicitations from one of my credit card companies that want to give me a loan of up to 20,000 for 5.9 or 6.9%

KK

 

[RossMAN]

Originally posted by: Vic
My credit union (the largest in Oregon) will do it for up to 60 months at 3.99%

edit: and they'll finance up to 100% of the car's high book value. Private party or dealer does not matter.

I didn't ask the CA Credit Union what % of the car they will lend on a 1996 model but I'm guessing it's around 70-80%.