 TITLE: How to Buy a Car From a Private Seller CONTENT: Secure Your Financing\n---------------------\nIf you can afford to buy a used car with cash, that may be the best way to save money and simplify the process. However, some lenders offer private party auto loans if you need financing. Overall, about one-third of used vehicles were purchased with financing as of the third quarter of 2020, according to Experian Automotive Industry Insights.\nBefore you apply for financing, you may want to check your credit. Credit reports from all three credit bureaus (Experian, TransUnion and Equifax) are available at AnnualCreditReport.com. And, you can get your Experian credit report along with your credit scores for free through Experian. If you don't have a good credit score, it may be difficult to qualify for financing with favorable terms. In that case, you may want to rethink your timeline and budget and focus on improving your credit first or look for a car you can afford to buy with the cash you have on hand.\nIf you think your credit is good enough to qualify you for affordable financing, look for lenders that offer private party auto loans, which is something not all lenders do. The rates, terms and requirements can vary depending on the lender, so shopping for a loan is an important step in finding the best deal.\nDepending on the lender, you may also need to have a car picked out before applying for financing. However, you can sometimes get preapproved for an auto loan if you haven't decided on a specific car yet.\nWhen you're applying for an auto loan, you can take a strategic approach by submitting all your applications within a 14-day window. Applying for an auto loan causes a hard inquiry to be added to your credit report, which may hurt your credit scores. However, credit scoring models count multiple auto loan inquiries as a single inquiry for scoring purposes if they happen during a short period. END