So, the perfect spec car that my wife and I have been looking for showed up on BAT. It is everything we are looking for. 95% sure it will go for too much $$$ and we aren't quite ready yet. But we wouldn't be able to buy it with cash anyway. If it was at a dealer it wouldn't be an issue to finance.
So my question it, how would one go about financing a dream car bought from a private seller on an auction site? And yeah I know, financing bad....this is one of those cars that won't go down in value over time. It can be enjoyed and sold later for no real loss in value, but we aren't buying it as an investment.
Thanks!
PMRacing said:
So, the perfect spec car that my wife and I have been looking for showed up on BAT. It is everything we are looking for. 95% sure it will go for too much $$$ and we aren't quite ready yet. But we wouldn't be able to buy it with cash anyway. If it was at a dealer it wouldn't be an issue to finance.
So my question it, how would one go about financing a dream car bought from a private seller on an auction site? And yeah I know, financing bad....this is one of those cars that won't go down in value over time. It can be enjoyed and sold later for no real loss in value, but we aren't buying it as an investment.
Thanks!
I believe your only option is one of those "Classic car" type loans depending on what you're buying. Lightstream probably has something for you.
Dude, you are a stud. HELOC?
dps214
SuperDork
10/12/23 8:17 p.m.
Basically the same as providing your own financing when buying from a dealer. Auto loan if the car is new enough to qualify, personal loan if it isn't.
As someone who sells regularly on online auctions, when I sell something that needs financing this is how it works:
BaT charges you the 5% fee on your CC. You get my info. Call me. Tell me you will finance it. Lots of people have finance ready and their bank cuts me check after I send title. Others wait to get finance after and there is slight delay and a credit union or bank or lightstream etc cut me a check.
Of the 73 cars sold by me on 3 online auction sites, 4 have been financed. Interestingly they are all middle of the road value wise (think new IS500)
High dollar and low dollar seems to be all cash. Well remember I see the cash - I dont know they got it. They could have gotten heloc or loan etc etc
Good luck on the dream car search. YOLO.
Another option...pay cash to get the transaction done and then finance after you own it.
I did this back in 2016 via Penfed (times may have changed so research)
I bought a Prius for $7k via private party. I paid cash and the deal was done quickly. I then learned (certainly via GRM) that Penfed was doing 1.99% used car loans (did I mention that times may have changed!) I found out that even if you owned a car outright and had the true title for the car, Penfed would still lend you money for the car (which then adds Penfed as a co-owner on the title.) Officialty this was called a "loan on free and clear title".
I figured that for 1.99%, it would be handy to have the $7k of cash on-hand in exchange for $200 payments. Some calls, some signatures sent in the mail (which would now likely just be electronic signatures) and before you knew it a check arrived in the mail. If I remember correctly, since I bought the Prius under-value at $7k, I think I borrowed $8k on it so the check THat arrived was for $8k.
HELOC was going to be my suggestion. But only if you're paying off quickly.
what is your budget? say it out loud because its easy to get swept up in online auctions and end up WAY over your budget. Especially when you're financing because in the moment it's easy to say, another $1,000 is only $xx a month on the payment, etc.
also remember that BAT charges 5% on top of the sale price to your credit card so factor that into your budget
finally, it's a beautiful car and I hope you get it for what you're thinking its worth
In reply to ClearWaterMS :
I know budget and that car will easily. jump that hurdle. I was asking the question because if a less expensive version comes along, I want to be ready.
I would talk to Penfed, although you're probably looking at a pretty short notice because auction and I don't know if they can turn things around quite this quickly. I know I had a couple of hiccups when I got the loan for my C2S (which oddly enough is almost a spitting image of the BaT car, only that mine's a PDK car and had quadruple the miles) and it took a couple of weeks.
Otherwise, maybe a line of credit that you can access quickly to pay for the car, and once you've got the title and car, turn it into a regular car loan with a suitable credit union?
Asked my bank about the options for financing a used car when I bought the Toyobaru and they also recommended the line of credit route. Ended up just scraping the cash together for it.
