At Credit Concierge, we understand that the best deal can be a car that a friend, neighbour, or other private seller sells. As a result, we aim to make getting into your new vehicle as easy and painless as possible. Lenders may require a few additional items with a private sale transaction to ensure that you, the buyer, receive a reasonable price from the seller and not invest in someone else’s problem.
Is It Possible To Obtain A Car Loan For A Private Sale?
Most definitely! Many people choose to buy cars from private sellers. That is because buyers have more negotiating power with private sellers. Arranging a significant discount with the dealerships is more difficult because they have numerous overheads to meet, including employee salaries, rent, franchise fees, and extra expenses. Private sellers are exempt from these costs and are more flexible with their price.
Furthermore, private sellers are often ready to reduce the vehicle price to complete the sale as quickly as possible, whereas a dealer can only go so far; they cannot decrease any farther than what is known in the industry as the minimum retail prices. Thus, whether you buy privately or through a dealership, the financing is relatively similar. In all circumstances, the lender’s income and general profile requirements are the same. A private sale vehicle loan, on the other hand, may require you to sign a few more documents before closing the deal. Additionally, depending on the age of the vehicle, lenders may charge a lower rate for a private sale as the car doesn’t come with a high LTV that sometimes occur with a sale at a dealership.
Why Should You Buy Your Next Car From A Private Seller?
Purchasing a vehicle from a private seller has many benefits and some drawbacks. When there is no dealer involved, the transaction can be considerably more straightforward, and you can ask specific questions about the vehicle directly to the prior owner, giving you a much more precise picture of the vehicle’s condition. However, because private sellers in Australia are not required to guarantee a vehicle’s condition, buying a car privately might come with some risks.
If you’d want to know how much you qualify for; talk to us about getting a car loan pre-approval, so you’ll know how much your loan will cost even before you commit.
Apply for Fast Approval or call 1300 18 18 83 to speak with one of our Private Sale Car Finance Specialists for further information?