Private Car Finance: Buying A Car Privately | Aussie Car Loans

Private Car Finance: Buying A Car Privately

private car sale

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When it comes to getting your next set of wheels, you’ve really got two choices. You can either go to a car dealership/auction or buy a car privately.

Private sales are the biggest market for car sales in Australia. It’s important to know the potential pitfalls of buying a car privately. It’s also important to know how private car finance works.

Here are some actions we suggest you take:

  1. Have an independent inspection of the vehicle conducted. Making sure the engine VIN registration and odometre reading are correct.
  2. Do a search in the personal property security register or PPSR. This ensures that the vehicle you’re buying isn’t stolen or has finance still owing.
  3. Finally, secure a write-off report. This ensures the vehicle hasn’t been written off by an insurance company previously. If someone has then repaired it for resale you will know.
  4. We would 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.

These checks provide alot of peace of mind when purchasing a vehicle privately.

We also recommend picking up the phone and having a chat with us about your financial position and what is the best option for purchasing the vehicle privately.

Car for private salePrivate car sales are the single biggest market for car sales throughout Australia.

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.

old classic car for sale

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.

Piles of paperwork

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?

Happy with new car

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.

Contact us to talk about rates or apply online today.

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