When you’re purchasing a used car from a private party, you need to get a direct loan if you can’t afford to pay cash. This can be tricky if your credit is less than perfect. So, how do you finance a vehicle from a private seller if you’re struggling with poor credit?

Direct Lending from Banks

How to Get Bad Credit Auto Financing for a Private PurchaseTypically, anyone looking for a direct loan would think of using a bank first. Sure, a bank can give the best interest rates on loans, but at what cost?

ATM fees, overdraft fees, minimum checking account balances, and the costs to open accounts are all ways that banks reward their shareholders.

Plus, banks typically loan only to the people with the very best credit. If you're dealing with poor credit, getting approved directly with a bank can be a challenge.

Direct Lending from Credit Unions

So, is there somewhere to turn if you’re looking to finance a car from a private seller? Actually, there is. Credit unions often offer auto loans that can be easier to qualify for if you’re struggling with less than perfect credit, especially if you’re a member in good standing.

Because credit unions are not-for-profit lenders, they often pass along savings to their members. Requirements for membership vary between location and credit union, but they can typically be met with ease if you find the right one for you. Credit unions also tend to have fewer fees and surcharges for their members than banks. At the same time, credit unions typically don’t work with all credit-challenged consumers.

If Direct Lending Doesn’t Work Out

Direct lending doesn’t always work out for consumers with poor credit. If this is the case, don’t be discouraged that you can’t find lending for a car from a private owner. Turn to Drivers Lane instead. You may qualify for an even better vehicle than you thought was possible by working with our dealers.

We work with a nationwide network of special finance dealerships that have lending resources available to help people who have bad credit, no credit, and even bankruptcy. These places don't make your credit the most important factor in qualifying for an auto loan the way direct lenders like banks and credit unions often do. This makes it easier for people in unique situations to get into new and used car loans.

Don’t delay any longer! Get started today by filling out our online auto loan request form now.