Yet some car finance lenders leave buyers with little choice but to go to a dealership to buy a used car.
For some lenders, a dealership offers certain levels of protection as the dealer needs a Motor Dealers Licence in order to operate.
So the banks and lenders are often more comfortable using a car from a dealership as security for a car loan, but may only offer an unsecured loan for private sales, which can result in much higher interest rates.
They want to make sure you’re buying a Buick and not a bomb.
Many buyers ask the same question…
How Can I Get Secured Finance To Buy A Car From A Private Seller?
Lenders that do offer secured loans on private car sales will need some information from the seller and about the car in order to approve the loan.
You’ll most likely need to provide the current registration certificate for the vehicle, the current owner’s drivers licence, their banking details, a sale agreement and a financier pay-out letter if the vehicle is currently under finance.
In order to confirm that the vehicle details are correct, a vehicle inspection report will also need to be completed, which provides further protection to the lender and also to you as the purchaser.
This can be complicated and time-consuming, often driving people into the arms of car dealerships.
Aussie Car Loans’ Private Car Sale Financing
Everything you need to know about financing a private car sale and the car loan process.
At Aussie Car Loans we specialise in financing private car sales and offer a number of free services to ensure the purchase is quick and easy.
If you’re looking at a car that’s being sold privately we’ll help with:
- FREE Vehicle Inspection: Not a mechanical inspection, but we will check all the major identifiers such as the engine, VIN, registration and odometer are correct.
- FREE Personal Property Security Register (PPSR) Certificate: making sure there are no loans out on the vehicle already.
- Conduct Process & Payout Procedure: if there’s interest in the vehicle with a finance company in Australia we can organise the transfer and assist with the payout process.
- FREE Vehicle Write Off Report: ensuring the car has not been previously written off by any insurance companies and repaired for resale.
- Car Insurance Options: we have several choices in car insurance and warranty product.
- Liaise With Vendor: we will clarify that the seller has the right to sell the vehicle. Once approved and the loan has settled the proceeds will be transferred (EFT) directly into the car seller’s nominated account, eliminating any potential delays to the sale.
Frequently Ask Private Car Finance Questions
How much can I borrow? You can borrow between $5K – $130K for a private car sale. The actual amount depends on your current financial circumstances and your capacity to repay the loan amount.
How hard is it to get private car finance? Aussie Car Loans makes it as simple and quick as possible. We have our own unique process which makes the process straightforward and approvals quick. Our private car finance process also protects you as a buyer from buying a lemon. The easiest way to get the ball rolling is call us or use the online car finance application.
Ready To Finance That Private Sale?
If you’re ready to purchase a car in a private sale, talk to the team at Aussie Car Loans to organise private car finance.
We can offer secured car loans on vehicles bought privately. We’ll even look after all the above services so the sale goes through as hassle-free as possible.