Showing results for 
Search instead for 
Did you mean: 

private party vs dealership

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.

Message 1 of 2
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. 





Current Score (01/13/2020): EXP: 680; TU: 684; EQ: 665
Gardening as of 01/13/2020

Community America CU Cash Rewards - $10000 | Discover It Cash Back - $4000
Nordstrom Credit Card - $4000 | BMO Harris Cash Back MasterCard - $4000
Discover It Cash Back - $2000 | US Bank Cash+ Visa Signature - $2000
Target Red - $1100 | Chase Starbucks Visa - $1000
Capital One Quicksilver - $700

Total Credit: $28800
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.