To finance a car you are buying from a private seller, you need a lender that actually does private-party loans (many big banks do not), the car's VIN and exact mileage, the seller's name, and a clear path to get the title signed over to you with the lender recorded as lienholder. If the seller still owes money on the car, the lender will usually want a written payoff figure and may pay the seller's lender directly. Expect a higher rate than a dealer-arranged used car loan, and expect the lender to set age, mileage and title rules the car has to pass.
That sounds tidy on paper. In real life the sticking points are the seller's title, the seller's loan and the timeline, and a Facebook Marketplace seller does not have a finance office to sort them out. We read through current lender pages and NerdWallet's August 2026 roundup on November 8, 2026, and pulled together what you need before you show up with a check.
Step one: find a lender that will do it
Not every lender offers these. NerdWallet's private-party loan page, last updated August 7, 2026, says several large lenders have stopped offering private-party auto loans in recent years. Bank of America is one example: its auto loan FAQ says plainly that it does not finance purchases from private parties or individual sellers. Credit unions are worth checking early. Navy Federal, for example, lays out what to do after you pay a private third-party seller.
NerdWallet listed three options with estimated APR ranges as of August 2026: MyAutoloan at 6.24 to 32.90 percent, LightStream at 10.74 to 18.49 percent and PenFed at 4.79 to 13.24 percent. It also notes that private-party rates tend to run higher than dealer used car rates, because lenders see a sale between two individuals as riskier. Treat those ranges as a snapshot, since rates move every month.
What the lender will ask for
Navy Federal's FAQ says that once you have picked the car, you will need the 17-character VIN, the state where you will register it, the exact mileage reading and the seller's name. NerdWallet's list adds the year, make and model, a copy of the registration and title or title status, written payoff documentation if the seller still has a loan, and a bill of sale with the price, date and both parties' names and addresses. Requirements vary by state, so check your DMV.
The lender will also judge the car itself. Navy Federal says your rate depends partly on the car's model year and exact mileage, and that vehicles 20 or more model years old fall under its classic or antique category with different rates. Bank of America, for its dealer loans, refuses vehicles older than 10 years, at 125,000 miles or more, or valued under $6,000, along with salvage and branded titles, gray market cars and lemon law buybacks. Different lenders draw these lines differently; our post on lender age and mileage limits collects more examples. A branded title is often a dealbreaker; see financing a rebuilt or salvage title car.
When the seller still owes money
This is where private sales go sideways. If the seller's bank holds the title, the seller cannot hand it to you. NerdWallet says many lenders send the money straight to the seller's lender to pay off the old loan and forward anything left to the seller, while others give you a check to sign over. Get the payoff amount in writing from the seller's lender, not from the seller. Our private-party lien payoff steps post walks through the order of operations, and wire transfer risks covers the scams that show up when a "seller" asks you to wire money somewhere unexpected.
After you pay: the title deadline
The loan is not finished when the seller takes the check. Navy Federal tells borrowers to make sure it receives the title within 90 days of purchase, and says DMVs generally want the title signed over by the seller, a bill of sale and a copy of the promissory note to record Navy Federal as first lienholder. For refinances, its FAQ warns that if the lien-recorded title does not arrive within three months, the loan's APR may be converted to its personal loan rate. So, get to the DMV fast. A clean bill of sale helps.
The personal loan alternative
If no auto lender will take the car, a personal loan is the fallback. NerdWallet points out that because the car is not collateral, there are no vehicle age or mileage restrictions, and no lender requirement for full coverage insurance on an older car. The downside is approval leans harder on your credit and income, and unless your score is high, the rate is usually worse.
Check the car before the lender does
Some lenders, Bank of America among them, exclude salvage and branded titles outright, and you do not want to learn about a brand after you have agreed on a price. Run a history report before you apply so you are not surprised by a salvage brand after approval. Our post on CARFAX for private-party sales covers how to get one when the seller will not. CARFAX's own single report has cost about $39.99 to $44.99, and Edmunds listed $44.99 in June 2026. CarVins is a licensed reseller, not affiliated with CARFAX, AutoCheck or Experian; guest reports have been about $5.50, members about $4.50, and the bundle about $6.75. Confirm at checkout, and be wary of any seller who sends you their own PDF instead.
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