When it comes to getting your next set of wheels you’ve really got two choices either going through a dealership or going privately and with private sales being the biggest market of car sales in Australia it’s good to know the potential pitfalls and how to avoid them, when you’re shopping around for the best car finance purchase.
Firstly have an independent inspection of the vehicle to make sure the engine VIN registration and kilometer numbers are all correct. Secondly take your vehicle through the personal property security register or PPSR process. This ensures what you’re buying isn’t stolen or still owing finance.
Finally, secure a write-off report. This will provide peace of mind that your vehicle hasn’t been written off by an insurance company and then repaired for resale by someone else.
At Aussie Car Loans we also recommend getting the vehicle you’re looking at checked over by an organisation such as RACQ or a friendly local mechanic to make sure it’s running as it should. We also recommend picking up the phone and having a chat to us about your financial position and what is the best option for purchasing your new vehicle.
Yet some car finance lenders leave buyers with little choice but to go through 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.
This can be complicated and time consuming, often driving people into the arms of car dealerships.
Aussie Car Loans’ Private Sale Financing
Everything you need to know about financing a used car and the car loan process.
At Aussie Car Loans we specialise in 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.
If you’re ready to purchase a car in a private sale, talk to the team at Aussie Car Loans to organise finance.
We have access to a wide range of lenders offering 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.