Used Car Financing - Private Purchase

This topic has been on the board several times but not from the private seller aspect. Most used auto loans seem to require purchase from a dealership or jack up interest rates if purchased from a private party.

I currently have a 1.9% loan from Lightstream on my wife's vehicle and have had no complaints. They didn't even require a lien on the vehicle which shocked me. The 60 month loans from a private seller start at 3.59% though. Am I better off looking elsewhere? Or maybe applying for the loan for a dealership and playing dumb if they say anything?