Hey Everyone,

I'm a soon to be owner of an S2000 this coming winter , however I have a few problems.

I'll be buying an used AP2, most likely from a private owner. I'm unsure on how payments on the car will go. I do not plan to pay in full all at once, rather with payments instead. So far, I have around 5k for the down payment.

My plan goes as follows:

1. Source out the S2000.
2. Negotiate with the owner over the price.
3.
4. Drive home.

As you can see, I'm unsure on how step #3 will go. Do banks usually grant car loans when they are unable to see the title at the given moment? I'd like the owner to get his money in full before I drive home in my new car, rather than pay little by little (I know most prefer to have their money all at once.).

On the whole, I'm confused on the whole process of buying a private owned used car. Please educate me on this matter.

 

Estimate the maximum you will require. Go to your bank and get a pre-approved loan for that amount. Then go car shopping once you get approved. You don't have to use all of the amount you got approved for. Once you find a car, the bank will generally tell you what next you have to do.

 

Everybody knows that phase one is "collect underpants".

Answer: ask your bank.

 

And ,if you have leftover money,you can use it,to get aftermarket parts.!!

 

Just know that banks will charge you a higher rate for buying privately (compared to buying new or from a dealer).

You're not putting that much cash down so your loan rate will matter.
The couple thousand you "save" by buying privately may disappear when you calculate interest costs over the ~3-5 years of the loan.

So unless you make a big killing on the deal, be careful about hidden costs.

 

hmm, my bank doesn't charge extra for private party cars. some do, though...I would guess a half percent premioum.

 

Check out www.capitalone.com - they also do private party loans.

 

Try lendingtree.com to get 3 banks to contact you with loans. Also eloan.com. Good luck. Hope you are driving it in no time.

 

Try to use a credit union if possible. They typically have MUCH better rates than conventional banks. I financed mine through one and got a good rate (4.75%). My credit union did charge an additional .25% interest on used cars vs. new, but thats not that big of a deal.

As others have said, get pre-approval for a ballpark loan. Once you find a car and settle on the price you will return to the lender and do the paperwork. If the seller owns the car outright then you will give them a cashier's check from the bank, and then you will have to bring the title back to the bank, and that should be it (aside from registration).

If the seller still owes on the car, then your lender will typically cut two checks: one to the lien holder to release the title, and one to the owner for the difference (if any) between what he/she owes and the selling price.

Good luck with your hunt!

Craig

 

Thanks for the responses so far everyone! They have solved much confusion on my part. Keep the input coming.