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private party vs dealership

Genio
Established Member

private party vs dealership

Is there a different loan process for these two types? I was pre-approved for 32k with Navy Federal for a dealership used car loan, then tried to do a 21k private party loan and was denied. Any ideas why? The dealership I went to tried to scam me a bit, gave me a salvaged title car, so I went with one I knew as good... Then got denied.

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jordandhale95
Regular Contributor

Re: private party vs dealership

Believe it or not, buying indirectly (through a dealership) is always easier than directly (directly through the bank)

 

Although it may be the same Bank/CU at the end of the day, they have different buying guidelines through indirect than they would direct.

 

a dealership’s portfolio is also taken into consideration. If the dealer’s portfolio is in the possible, the lender will sometimes allow buyers that wouldn’t normally qualify to be approved. 

 

 

 

 

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