What is a private party car loan?
A private party car loan (or private sale auto financing) is a type of auto financing designed specifically for purchasing a vehicle from an individual seller, rather than from a dealership; since private sales don’t have dealer-arranged financing options, buyers often turn to banks to secure a loan that covers the purchase price of the car.
The role of a private party auto loan is to expand purchasing options for buyers who find better deals outside dealerships, such as buying from family, friends, or online marketplaces like Craigslist or Facebook Marketplace.
How does a private sale auto loan works ?
With a private party car loan, the lender pays the seller directly (or releases funds once the title transfer is verified), ensuring both parties are protected. Buyers usually need to provide the vehicle’s details—such as VIN, mileage, age, and condition—because lenders want to make sure the car is eligible for financing. Most lenders also require the buyer to purchase auto insurance and confirm that the title is clean (not salvage or rebuilt).
Which banks and alternative lenders offer private party auto loans in the USA, UK, Ireland and Canada ?
Here’s a breakdown of lenders in the USA, UK, Ireland, and Canada that facilitate private-party auto loans—financing for vehicles purchased directly from individual sellers rather than dealerships. This includes both traditional and alternative lenders:
United States
- PNC Bank – Offers dedicated private-party auto loans. Borrowers apply in-branch, receive funds via check, and must handle title transfer and lien placement themselves. PNC Bank
- U.S. Bank – Provides personal loans suitable for private car purchases, including pre-approval and potential autopay rate discounts.
- LightStream (by Truist) – An online lender offering private-party auto loans from $5,000 to $100,000 with same-day funding and no appraisal restrictions. lightstream.com
- Credit Unions & Community Banks – Many, such as Local Credit Union West, offer private-party auto financing when pre-approved.
- Personal Loans from Banks/Online Lenders – If private-auto options are unavailable, unsecured personal loans from banks or fintech lenders are an alternative.
United Kingdom
- Broker Platforms (e.g., Car.co.uk, Zuto, Oracle Finance) – These loan brokers help locate lenders who finance private car purchases, though not all lenders openly advertise this. Car.co.ukzuto.comoraclefinance.co.uk
Canada
- TD Bank – Offers a “Private Sale Vehicle Loan” with fixed or variable rates tailored for private auto purchases. TD Canada Trust
Ireland
- Credit Providers (e.g., Bank of Ireland) – While mainly focused on dealership financing, some conditional eligibility for private sale may exist via tailored agreements or specialized green car loans when gifted quotations extra to regular approvals. Bank of Ireland