Buying private sale: what lenders need before they will fund it
Private sales are financeable, but the checks differ from a dealership purchase. Knowing them up front saves about a week.
Buying privately often gets you a better price, and most lenders will fund it. What changes is the verification: with no dealer in the middle, the lender has to establish that the asset exists, that it is worth what you are paying, and that nobody else has a claim on it.
In practice that means a few things. The seller has to be identified and their ownership confirmed. The asset is checked against the Personal Property Securities Register to make sure there is no finance still owing on it. Many lenders will want an inspection or a valuation, particularly on older equipment.
Expect the funds to go to the seller directly rather than to you. That is not a lack of trust — it is how the lender knows its security actually got bought.
None of this is difficult, but it adds days. Getting the registration details, the seller's particulars and a written sale agreement together before you apply is the single biggest thing you can do to keep a private purchase moving.
This guide is general information only. It does not take your objectives, financial situation or needs into account, and it is not financial, legal, tax or credit advice. Speak to us or another professional before acting on it.
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