Can I get a car loan for a private sale?
Yes. Plenty of lenders offer used car finance for private sales – they just do a little more checking, because there’s no dealer standing behind the car.
Say you’re buying your first car: a tidy hatchback you’ve found on Facebook Marketplace. You send us the listing and price, and we line up a lender that funds private sales. Once you’re approved, the lender verifies the seller, confirms the car is clear and transfers the money straight to them.
No awkward cash handover in a shopping centre car park. You drive home with clear ownership, and the seller has their money in the bank.
Used car finance from a dealer, private seller or auction
The loan itself can look much the same, but the process around it doesn’t. Here’s how the three main ways to buy a used car compare.
| Dealer | Private seller | Auction | |
|---|---|---|---|
| Price | Usually higher, with room to negotiate | Often below yard prices | Can be sharp, but bidding moves fast |
| Paperwork | Dealer supplies a tax invoice | Seller ID, rego and VIN details | Auction house supplies the paperwork |
| Finance timing | Finalised at the yard | Lender checks seller and car, then pays | Get pre-approved before you bid |
| Watch for | Add-ons bundled into the loan | Money owing, written-off history | Cars sold as-is with little history |
How old can a car be to get finance?
It depends on the lender. Each sets its own age limit, and many look at how old the car will be when the loan ends – so a long term on an older car can tip it over the line.
Lenders also weigh kilometres, condition and whether the price makes sense for the model. If a car is too old for a secured loan, an unsecured personal loan can still get you there; it usually costs more, but it doesn’t lean on the car’s age or value.
What checks should I do before buying a used car?
Start with a PPSR search. The Personal Property Securities Register shows whether money is owed on the car and whether it’s been recorded as written-off or stolen.
- PPSR – search the VIN, then match it to the plate on the car itself, not just the ad.
- Registration – confirm it’s current and matches the seller’s paperwork.
- Service history – a stamped logbook tells you more than a fresh polish.
- Independent inspection – a mobile mechanic can spot what you’d miss.
- Test drive – cold start, highway speed, a hill start and a look underneath.
Our private sale car buying checklist walks through inspection day step by step.
What happens if the car still has finance owing?
You can still buy it – it just has to happen in the right order. The seller’s lender provides a payout figure, your lender pays that first, and the balance goes to the seller.
Take a tradie buying a five-year-old dual cab from an electrician who’s upgrading. The seller still owes money on it, so we organise the payout letter and the lender settles the old loan before paying the rest to the seller. The ute changes hands with nothing hanging over it.
What you’ll need
- Your driver licence or passport
- Payslips or bank statements showing your income
- The car’s VIN, rego number and asking price
- The seller’s contact details for a private sale
- A payout letter if the seller still owes money on the car
- Details of your current debts and regular expenses
Who it usually suits
- Aged 18 or over with a steady income
- Living in Australia as a citizen, permanent resident or eligible visa holder
- A car within the lender’s age and condition limits for a secured loan
- Repayments that fit comfortably in your budget
- A credit history that isn’t perfect won’t automatically rule you out
