How do car loans work?

Ok, well here%26#039;s the deal I%26#039;m looking for a used car and I have no idea how car loans work. I know you get a loan through a bank and all that jazz, car dealerships work with banks/finance companies that%26#039;s great. But, what I want to know is how would it work out if I%26#039;m trying to buy from a private seller like some dude who wants to sell his car through craigslist. The car is $15200 but, it%26#039;s from a private seller I don%26#039;t understand how it would work to buy the car from this guy, are private sellers expecting like all the money in cash? Or would it work like suppose I make a $3000 down payment and get a loan from the bank for $12200 would the bank just hand me $12200 so I could give it to the private seller in cash and deal with the bank for the loan? Could it work this way or am I being an ignorant naive jackass who has no idea what the hell he%26#039;s talking about?

How do car loans work?

Go to KBB.com and NADA.com and price out the Car. The back will only lend on so much of the value. I would check out a Credit Union they have the best rates. The banks will go off the kbb price of retail and the car price will have to be around it. craigslist is a cash based deal but if you so to speak get preaproved and have the cash from the bank or credit union then you have a new car. Good luck.

How do car loans work?

If you want to finance a car you purchase from a private seller you just need to get pre-approved. This can be through your credit union, bank, or a finance company (listed in order of lower to higher interest rate you will pay). The pre-approval will probably be conditioned on 1) the maximum amount you can borrow regardless of the value of the vehicle you are buying 2) the percentage of the car value they will be willing to finance. You can only finance whichever of the above two conditions represents the lower $ situation.

Your preapproval is the lending institutions guarantee to fund the sale once they receive the title and can record the lien. You should also be prepared with the phone number and a contact name at the lending institution that the seller can use to verify the preapproval is legit and not somthing you got at Joe%26#039;s Copy Shop for $5.

Most private sellers should accept this as long as the lending institution is a bank, credit union, or well known and established finance company. Don%26#039;t expect them to accept a preapproval from Uncle John%26#039;s Hog Farm and Auto Finance.

The loan officer at the bank, credit union, or finance company can walk you through the specifics of the sale and actions required for final funding but it is not painful or difficult.

How do car loans work?

Here are the steps:

1) Inspect the car. If everything checks out go to step two.

2) Get a Bill of Sale from the seller that lists the VIN, mileage, sale price, and equipment.

3) Take that to your bank and apply for an auto loan.

4) Call the DMV and ask how much taxes/title/license will be based on the selling price.

5) If approved on the loan, borrow 12,200 + the amount you get from the DMV.

6) Take the bank check and enough cash to the buyer that will equal $15,200.

7) Get the title from the seller and go directly to the DMV to start the title transfer process, get plates, and pay taxes.

8) Take the DMV paperwork to the bank. They will want to see the title application.

9) Enjoy your new car.

How do car loans work?

Hi.

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