Private Car Finance
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At eCarz, our vehicle financing solutions extend beyond purchasing a vehicle from an official seller, with private sale car finance being one of our main focuses. Buying a car from a private seller has long been a tradition in Australia, with most drivers purchasing their first car this way. The rise of the internet and social media has made this even more prevalent, as car owners are able to advertise and sell their vehicles on a range of platforms, from Facebook Marketplace to Gumtree. That’s why eCarz is here to make the process of securing a private car loan quick and easy, so you can drive away in your chosen vehicle as soon as possible.
As the car broker residents turn to for private car finance, eCarz is here for you.
How Does Private Car Finance Work?
Securing a car loan for private sale begins with you reaching out to us and discussing the type of vehicle you are in the market for. Whether you are searching for something in particular or simply desire a car that suits your budget, we discuss your options with you before helping find the perfect loan for your situation. Once you have been approved, you can begin searching for the vehicle you wish to secure, whether that be from someone selling the car from their front yard or an online marketplace. Once you have found the vehicle you wish to purchase, pass the details through to us so the vehicle can be assessed. Before granting approval, some details are required from you about the vehicle and the seller:
- Ensure the seller is the actual owner of the car.
- Get proof of ownership.
- Current registration papers, which can be gained from the QLD Transport website with consent from the owner.
- Get a copy of the owner’s drivers’ licence and ensure that it is valid.
- Make sure you are paying the correct entity. Get proof of account details that match the registration papers, drivers’ licence with matching bank statement.
- Do a PPSR check on the car, ensure that it is not encumbered or written off.
- If owned by a company, ensure the person selling the car, has authority to sell the car.
As part of the approval process, most lenders require the car to be inspected by a licensed mechanic. There are a number of ways inspections can be handled based on the lender, so it is recommended to speak to your broker first to ensure you are matched with the right lender to suit your wants and needs. We understand how stressful purchasing a car can be, especially from a private seller who may sell the vehicle to another buyer at any time, which is why we race through our extensive network of lenders to secure you the best possible private party car loan and close the deal. Pre-approval is a handy benefit to have when looking to secure your purchase, as you are free to negotiate knowing you already have the funds approved.
How Long Does It Take to Secure Private Sale Car Finance?
Purchasing a car from a private seller is typically a time sensitive affair, as you want to secure the vehicle before anyone else does. That’s why our approval process is designed to get you approved for your ideal loan as quickly as possible. As a market leader in providing private car finance, we have a large collection of connections to simplify the process and provide you with the best available loan for your purchase. Rather than sitting around, we speed towards getting you behind the wheel of your chosen vehicle, ensuring you drive away satisfied.
Take the eligibility test today to see if you are eligible for a car loan for private sale. To learn more about the private car loan process, or to get started, reach out through our contact page.
How is a Car Loan for Private Sale Different from Traditional Finance?
Buying a vehicle from a private seller means there is a greater chance of encountering fraudulent activity when compared to purchasing through a car dealership. Our team conducts extensive research of the car and the seller to ensure you are receiving what you pay for and not being deceived into buying an inferior car or having your money stolen. As part of the private party car loan process, we may require documentation from the seller, such as their driver’s license and the registration certificate for the vehicle.
Note: There are limitations that may affect how lenders fund private sales, such as the age of the vehicle and the age of the vehicle at the end of term. If you require further clarification or information, please reach out to us on 1300 378 387 or through our contact page.
Understanding Private Sale Car Finance: A Beginner’s Guide
- Potentially Lower Prices: Cars sold privately are often priced lower than those at dealerships since the seller doesn’t have the overhead costs associated with running a dealership.
- Flexibility: Sellers may be more open to negotiation and flexible with the terms of the sale.
- Direct Communication: You can get a clearer picture of the car’s history and condition directly from the owner.
Before you start shopping for a car, assess your financial situation to determine how much you can afford. Consider your:
- Budget: Calculate how much you can comfortably spend on monthly payments without stretching your finances.
- Down Payment: A larger down payment can reduce your loan amount and monthly payments. Aim for at least 20% of the car’s price.
- Credit Score: Your credit score will impact the interest rate you’re offered. Check your score and, if necessary, take steps to improve it before applying for a loan.
When buying from a private seller, due diligence is crucial:
- Research: Look up the make and model you’re interested in to understand its market value and common issues.
- Inspect the Vehicle: Always inspect the car thoroughly or have a trusted mechanic do it. Check for any signs of wear and tear or hidden damage.
- Verify the Seller: Ensure the seller is legitimate. Ask for the car’s history report to check for accidents or other issues.
When buying from a private seller, due diligence is crucial:
- Research: Look up the make and model you’re interested in to understand its market value and common issues.
- Inspect the Vehicle: Always inspect the car thoroughly or have a trusted mechanic do it. Check for any signs of wear and tear or hidden damage.
- Verify the Seller: Ensure the seller is legitimate. Ask for the car’s history report to check for accidents or other issues.
After purchasing the car, managing your loan responsibly is key:
- Make Timely Payments: Set up reminders or automatic payments to avoid late fees and potential damage to your credit score.
- Monitor Your Loan: Keep track of your loan balance and interest rate, especially if you have a variable-rate loan.
- Consider Refinancing: If you find a better rate in the future, refinancing can help reduce your monthly payments or total interest paid.
Once you’ve secured your financing and found the right car, follow these steps to finalize the purchase:
- Negotiate: Use your research to negotiate the price. Having pre-approved financing can give you leverage.
- Review the Contract: Ensure the sales agreement clearly states the price, payment terms, and any conditions of the sale.
- Complete the Paperwork: Transfer the title and registration according to your state’s regulations. Make sure all necessary documents are signed and filed properly.
Secure Private Car Finance Today!
Purchasing a car from a private seller can be a stressful experience as you manage both your finances and a seller with an unknown reputation. But you don’t have to go through the process alone, as eCarz is here to work with you through every step of the process, from securing financing for the purchase to seeing you off as you take your new car for its first drive.
If you want the best deal possible, going through an independent broker like eCarz is your best option.
We operate independently from any other organisation or brand, so you can be sure we’re acting in your best interest.
To get the process started or to make an enquiry, reach out via our contact page, or give us a call on 1300 378 387. Take the eligibility test to see if your chosen purchase meets our criteria to get a head start on being approved. As the car finance broker relies on to obtain vehicle loans at the best possible rate, drive away with eCarz today.
