Auto Loan for a purchase from car owner

[dmaksimov]

Hello,

I'm new to this forum and I don't really have much of an idea how most loans work, so I was wondering if I can get some answers here. 

I'm buying a car from somebody I know for $4000. Is it possible to take out an auto loan for this, even though I'm not buying from a dealership?

The car does have a reconstructed title. I heard that most places won't give out loans for a reconstructed title. Is this true?

I have a pretty good credit score ~720 but only about 6 months of credit history.

I'm just wanting to see what my options are.

Thanks in advance!

[Ditovera]

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@dmaksimov wrote:

Hello,

I'm new to this forum and I don't really have much of an idea how most loans work, so I was wondering if I can get some answers here. 

I'm buying a car from somebody I know for $4000. Is it possible to take out an auto loan for this, even though I'm not buying from a dealership?

The car does have a reconstructed title. I heard that most places won't give out loans for a reconstructed title. Is this true?

I have a pretty good credit score ~720 but only about 6 months of credit history.

I'm just wanting to see what my options are.

Thanks in advance!

---

I dont know about an about an auto loan for this kind of purchase but my suggetion would be a personal loan from a CU. 

[RushXTC]

It's possible, But I'm pretty sure it's harder to get the loan this way.

BoA offers Private Party Auto Loans :

https://www.bankofamerica.com/vehicle-loans/auto-loans/auto-loans-financing.go

APR from 2.59%+

(Click on Rates for more info)

https://www.wellsfargo.com/autoloans/

Private Party APR starting from 5.73%+

[sccredit]

Given the price of the car is $4k, it probably has over 100k miles?  What is the age of the car, probably more than 5 years old?  And on top of that the car has a reconstructed (salvage) title?  I would say that those 3 reasons alone would be enough to not buy the car, they are also the same reason that any bank would refuse to finance it.  

[dmaksimov]

It's a 2009 Ford Focus SE with about 50,000 miles.

[cheap151]

You seriously don't want a car with a rebuild title unless you are handy. Even then, if you need a loan it isn't worth it.

There is a decent chance you are going to end up with no(working or inspectable) car and a loan. Did the owner rebuild it himself or did he recently buy it and find it's a lemon and now is trying to dump it? How well do you know this guy?

For a car to be branded rebuild it has to be declared totaled by a insurance company, for a 2009 to be totaled it had to have some serious damage. The process varys from state to state but at some point a rebuilt has to get a special inspection. Even if this car has gone through that, remember it is only a safety inspection. This car might not be alignable due to bent suspension/frame. It'll eat through tires if this is the case. Front end collision? The engine might have run for some time without proper cooling if the radiator got hit.

If you are dead set on buying this thing get it looked at by a mechanic(before you buy it!) and make sure it gets an alignment check. Get a title check done if you havn't already done so.

Not trying to be a jerk, just don't want you to end up with a loan and no car.