If you’re looking to buy a used car from someone off Craigslist or an ad posted on the grocery store’s bulletin board, it could be more difficult to find financing. Some lenders are less likely to finance cars bought from a private seller.
In fact, some lenders will charge you a higher interest rate on cars bought from individuals instead of dealers. It can sometimes be as much as two or three percent more—which can make a huge difference in terms of how much you pay over the life of your loan and how much you pay each month. Shop around to make sure that you get the best deal.