Best Private Party Car Loans

Many auto lenders require used vehicles to be 10 years old or newer (based on Investopedia research), making it difficult for prospective buyers on a budget to get the financing they need. In addition to not having a maximum age, PenFed also offers auto loans as low as $500, providing a lot of flexibility. You can get a loan worth up to $150,000, and the lender's maximum loan-to-value ratio (LTV) is 125%.

PenFed doesn't disclose a minimum credit score, but you can get pre-qualified and view potential rates with just a soft credit check. The lender's minimum APR is competitive, and the maximum is relatively low. If you can't get approved on your own, you can apply with a co-signer.

Repayment options are a bit strict compared to other lenders, which may allow terms as short as one year. PenFed’s terms start at 36 months, and the longest term—84 months—is reserved for relatively new used cars, with model years as new or newer than the current year minus five years, and less than 60,000 miles.

As an auto loan marketplace, AUTOPAY offers loans to borrowers across the credit spectrum. Its loans aren't just for bad credit, however—borrowers with excellent credit could qualify for rock-bottom interest rates. 

AUTOPAY doesn't disclose a maximum APR, but you can get pre-qualified with a soft credit check to view your potential offers. You can also add a co-signer if you can't get approved on your own or don't like the rate you see. 

Depending on your needs, AUTOPAY offers a wide range of loan amounts and terms, but its minimum loan amount may be too high for some buyers. It's also unclear about other eligibility criteria, making it difficult to know if you and the vehicle you're eyeing are eligible.

LightStream is fairly unique among auto lenders in that it doesn't require you to use the vehicle you're buying as collateral (you’re getting a typical personal loan). As a result, you don't have to worry about age or mileage restrictions, an appraisal, or a potential repossession. And depending on when you apply, you could get funding as soon as the same day.

Because LightStream's loans are unsecured, however, the interest rate can be high, even if you have stellar credit. LightStream’s rates for private party auto loans are higher than for some other loan types. Also, the minimum loan amount is much higher than some of the other lenders on our list. A 0.50% interest rate discount is available if you sign up for automatic payments, and LightStream offers to beat other lender offers by 0.10%, but only down to its lowest APR available.

What's more, LightStream’s minimum recommended credit score is fairly high at 660, according to customer support, and there's no pre-qualification option; that means you'll need to undergo a hard credit check to see if you're approved and which terms you qualify for.

U.S. Bank offers flexible loan amounts, with terms as short as 12 months. What's more, if you're a U.S. Bank customer you can get a discount on your interest rate for setting up automatic payments from your U.S. Bank checking or savings account. Depending on your creditworthiness, the lender may not require a down payment.

However, the lender's online pre-approval feature is only for used cars purchased from its network of dealerships, so you may need to apply at your local U.S. Bank branch for a private party loan—and the bank only has physical branches in 26 states.

Also, if you pay off your loan within one year of disbursement, you’ll be subject to a prepayment penalty worth 1% of the original loan amount. The minimum fee is $50, and the maximum is $100. 

If you're a USAA member, you can benefit from high loan amounts, flexible loan terms, and a relatively comfortable shopping experience. Once you're approved, you'll have 45 days to find a vehicle, giving you quite a bit of time to complete your search. 

The APR range is competitive, but the lender doesn't allow pre-qualification; you’ll need to submit an application and undergo a hard credit check to get an offer and see your rates. 

USAA’s minimum loan amount is a bit high, ruling out some less expensive vehicles. While USAA charges a higher APR on vehicles older than seven years, it doesn't have any maximum age and mileage requirements.