How to Save on Person-to-Person Auto Loans

If you're planning to buy your next car from anyone other than a franchised dealer (one authorized by a particular manufacturer to sell their new cars), you'll need a person-to-person auto loan.

With a specialized person-to-person auto loan, you can lock in your interest rate for over a month. It's like shopping with cash in your hand!

This page:

  • Explains how person-to-person auto loans work

  • Lists lender requirements for person-to-person car loans

  • Helps you find a person-to-person auto loan now

Get the lowest auto financing rates: Get Pre-Approved at RoadLoans whether you are buying a new or used car, or even if you are buying from an individual. Whatever your choice, you will save thousands. RoadLoans offers the lowest rates in the country, for people with fair or better credit ratings. If you have poor or no credit, click here to apply for special financing.

How person-to-person car loans work

In most ways, a person-to-person auto loan works the same as more conventional types of financing.

You determine the loan term and amount to fit your needs, apply, and lock in your rate. You'll receive a check draft from the lender that can be used to purchase a used car from any titled owner. There is no need to make a down payment of any kind.

Person-to-person auto loans can even be used to purchase a liened vehicle (that is, one that is currently being financed or leased by the seller).

However, simple as the process seems, there are differences. Person-to-person auto loans generally carry more restrictions than traditional financing.

Person-to-person car loan requirements

Because buying a car from an "unknown" seller is more of a risk, funding the loan is too. So lenders place more stringent restrictions on person to person auto loans.

While on a dealership purchase, you would be able to wrap the costs associated with registration, licensing, and tax into your loan principal, most person-to-person loans don't allow this. Instead, you'll be responsible for paying these fees to the DMV before the loan is officially funded.

And person-to-person car loans generally carry higher interest rates and stricter credit requirements. Your credit will need to be pretty clean to qualify for this type of financing.

(If it's not, don't despair. Buy from a dealership, and you'll still be able to secure independent financing. Read our guide to poor credit auto loans.)

Finally, person-to-person auto loans can't be used to purchase vehicles titled to a relatives or members of your household.

Person-to-person auto loans online

All restrictions aside, person-to-person auto loans are fast and easy to secure online. RoadLoans, one of the nation's largest online automotive lender, offers person-to-person car loans at very reasonable rates and with (almost!) instant approval.

And if you don't have a car picked out? No problem. Capital One will approve you for a flexible loan maximum. Use up to what you need (or nothing at all - there's no commitment). It's like shopping with cash in hand.

Read more about their fast application process, or apply for a low rate person-to-person auto loan now.


You should also apply with Capital One, a very large online lender which approves people with all types of credit ratings in all states. Click here to apply.

Learn how to save even more:

Sign up fo our free auto financing email course. You'll learn the step-by-step process that will help you save hundreds, even thousands of dollars on financing costs. And it's free!

Sing up here: