When purchasing a used car, it is important to be safe. That is why PrivateAuto offers an end-to-end platform to get the deal done. With instant payment transfers and secure messaging, you’ll never have to compromise your privacy. We also offer in-app vehicle financing through our integrated banking partner.
What is a loan term?
What is a Loan Term?
Each lender sets their own loan terms, and may offer different loans of varying lengths. Often, a longer-term loan comes with a higher interest rate, while a shorter loan term incurs a higher monthly payment. Loan lengths can be influenced by the amount financed or how much the used vehicle is worth, by the buyer’s credit score, and a number of other factors.
If a buyer has a current car loan that they are still making payments on, that will also influence both the loan term and the interest rate they will qualify for.
How long can I finance a used car?
What Is The Longest Loan Term Allowed For a Used Car?
Pros and cons of loan terms
Pros and Cons of Loan Terms
Long-term Loan Pros
2. Ability to purchase a more expensive vehicle
Long-term Loan Cons
2. Loan lasting longer than the car
3. Depreciation
Short-term Loan Pros
2. Faster pay-off
3. Refinancing
Short-term Loan Cons
PrivateAuto Financing
When closing the deal and sending payment, our lending partner will pay the seller in full. You’ll make monthly payments to the lender. It’s that easy. Wondering how much your monthly car payment will be? Our car loan calculator will tell you.
What’s the Ideal Amount of Time to Finance a Used Car?
Ideal term lengths depend on the person doing the car shopping.
1. What monthly payment can they reasonably afford?
2. What is their credit score like?
3. What auto loan amount can they qualify for?
4. What is their monthly cash flow and expenses?
5. What are their long-term financial goals?
Consider The Numbers Before Choosing a Loan Term
To choose the best loan, compare different loan terms and their respective interest rates. Determine the monthly payment for each loan and the amount of interest you will pay over the life of the loan.
Then, choose the loan that has the most favorable combination of:
1. Interest paid over the life of the loan
2. Monthly payment
Experience the PrivateAuto Advantage
Used Car Buying FAQ
How to buy a used car with PrivateAuto?
PrivateAuto makes buying a used car fast and hassle-free. Whether you’re looking for a Ford F-150, Toyota RAV4, Nissan Altima, or Ram 1500, you’re sure to find a great deal.
We are the only end-to-end car-buying platform that gives you everything you need to get the deal done, from making offers to sending payments. And you’ll never have to give out your contact info or compromise your security.
1. Create an account and get verified on PrivateAuto
2. Look for your dream car
3. Make offers
4. Schedule the test drive
5. Complete paperwork
6. Transfer the funds
7. Do the car title transfer
8. Finalize with your state
What is the safest method of payment when selling an OK car?
Until PrivateAuto, cash was one of the best car payment methods. By using PrivateAuto Pay, you can avoid the risks and inconveniences associated with dealing with large amounts of cash. Payments of up to $1M transfer instantly from seller to buyer, 24/7/365.
By receiving your money through our integrated banking system, both sellers and buyers can stay safe while exchanging large sums of money, as they don’t have to share their contact or banking information during the car-buying process.
Does my credit score affect the loan length I can qualify for?
Yes. A person’s credit score can have an effect on how long their loan term is. Having a bad credit score means you will have a longer loan term and a higher interest rate.
What is the Servicemembers' Civil Relief Act?
The Servicemembers’ Civil Relief Act (SCRA) defers civil duties to allow service members to devote their full attention to duty while also relieving stress on their families. The SCRA protects all active-duty National Guard members, reservists, and service members while they are on active duty.
What is negative equity?
Negative equity means that you currently owe more than your vehicle is worth. This is a car financing situation you want to avoid.
What is a registered trademark of FCA?
FCA US LLC is the company that owns the trademarks for SRT, Jeep, Dodge, Chrysler, FIAT, Mopar, ParkSense, and the Automobility Program.
Can I use a credit card to pay a car loan?
Most lenders don’t accept credit card payments. Usually, lenders accept debit card and check payments or electronic bank transfers.
Can I take out a loan without a bank account?
Some car buyers may be able to get a loan without a bank account, but we don’t recommend it. It is a very lengthy and difficult process. You’re better off opening a bank account to accommodate making payments on your loan amount.
What kind of insurance does my newly-bought used car need?
Used cars, just like new cars, are required to have liability auto insurance at a minimum. Every insurance company will have different rates, so shop around.
How to protect yourself when buying a car privately?
To protect yourself when buying a car privately, we recommend the following practices:
1. Never give out your contact information
2. Deal with verified sellers only
3. Have a bill of sale to legally validate the transaction
4. Send the payment through PrivateAuto Pay
The best way to protect yourself when buying a car privately is by buying it on a secure platform that offers these features (such as PrivateAuto).
Should I purchase a used car from a private seller?
You’re almost always saving money when buying from a private seller rather than from a licensed dealer. Dealerships work by buying low and selling high to make a profit. Just cut out the middleman.
PrivateAuto has a wide selection of used cars for sale across the US. We have security and convenience features that none of our competitors have.
What is a temporary tag?
Paper license plates, also called temporary tags, are given to people who just bought a car as a short-term way to register it. They are also issued for demonstration cars in dealerships, vehicle transfers, or loaned cars.
What does Santander Consumer USA do?
Santander Consumer USA Inc. is a full-service consumer finance company that focuses on car loans, third-party servicing, and helping customers with all kinds of credit.
Do I have to transfer the car title when buying a used car?
The vehicle certificate of title is a document that establishes the owner of a car. If you’re buying or selling a vehicle, it is crucial to transfer the ownership of the car to the new owner. You do so by transferring the vehicle title. The vehicle’s seller transfers the title to the buyer to establish the buyer as the new owner.
This process is fairly simple but can vary from state to state.
Are mortgage rates expected to drop in 2023?
Mortgage rates are expected to fall below 6% in the summer of 2023, according to the National Association of Realtors.
Can I resell a financed car?
Yes, you can sell a vehicle that has been financed. Before you present it to potential car buyers, you will have to pay off the car loan and clear the vehicle title. Make sure you contact your financing company for assistance to ensure you are taking all of the necessary steps.
Are used car prices dropping in 2023?
It appears that used car prices are dropping a bit, but they are not crashing as some predict. We think that the correction will continue until used car prices approach 2019 levels, but we could be wrong. Whether prices go up or down, PrivateAuto will continue to be the best place to buy and sell used vehicles.
Can I get a loan on a salvage title car?
Most lenders will not finance a salvage title vehicle. To learn more about this type of branded title, check out our guide to salvage titles, which explains exactly what they are and the pros and cons of a salvage title vehicle.
What is the benefit of PrivateAuto?
One of the biggest advantages of PrivateAuto is our integrated banking gateway, PrivateAuto Pay. PrivateAuto Pay allows you to instantaneously send any amount of money. The seller will get the money in a matter of seconds, whether after hours, on weekends, or during a national holiday. We charge no payment processing fee. It’s truly revolutionary.
Guaranteed funds for transactions large and small, even in third party car sales.
What is the best auto finance calculator?
1. PrivateAuto auto loan calculator
2. Bankrate car loan calculator
3. Forbes loan calculator
4. NerdWallet vehicle loan calculator