Using a Broker for Private Sale Car FinanceCan you finance a car through private sale? Absolutely!
Purchasing a vehicle from a private vendor is appealing as it usually saves you money compared to buying through a dealership.
Some lenders will tell you that they are not able to offer you a car loan for a private sale. Others may offer you an unsecured loan with really high interest rates, which will make the private sale less beneficial.
A broker like Auto Car Loans can help you to get finance for a private sale, but there are some extra conditions that a broker can take care of for you.
How does it work?
Applying for a private sale car loan through a broker allows you to have a secured loan, and they will still go through the usual process of finding the best deal for your financial situation.
As well as your car loan application requirements, some extra information about the private sale vehicle and its owner will need to be sourced. The car will also need to have a verified inspection done to make sure it actually exists (i.e. to avoid fraud) and doesn’t have any major damage or money owing on it. This is all arranged by the broker.
Rather than you having to worry about getting the loan and the passing the money onto your seller, the broker will liaise with the vendor and the lender will always the payment made directly to the seller once your loan is approved. This means less stress for you, so you can get on the road faster.
Requirements for a private sale car loan
Because there is a higher risk of fraudulent activity with a private sale than there would be going through a dealership, the broker will need to verify that the seller is who they say they are. They also need to know more about the car you are wanting to purchase.
The broker will need to be able to see the following documents when you apply for your car finance:
- The registration certificate for the vehicle
- The current owner’s driver license
- Vehicle inspection report
- The current owners bank account details
The broker will also do additional background checks on the car’s history. This will protect you and the lender by ensuring that the car has not been stolen, written off, experienced flood damage, or already has a loan out on it that needs to be paid off.
It’s also a good idea to consider purchasing extended warranty protection if you are in doubt over the reliability of your new vehicle. Auto Car Loans can offer extended warranties on both new and used vehicles, just ask!
Are you looking for finance for a private sale?
At Auto Car Loans, we are able to provide you with car finance for private sales. We’ll be more than happy to discuss your situation so please feel free to give us a call on 1300 301 051 or alternatively you can send us an email via our contact page.
DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.