Key highlights
- Many lenders finance business cars from private sellers
- Extra checks confirm ownership and clear title
- Allow a little extra time before you commit
- Gather paperwork early to keep the sale smooth
- One broker finds private-sale lenders across 80+ options
Some of the best value on a used business car is found in private sales rather than dealerships. Financing a private purchase is possible, though it involves a few extra checks. Here is how it works and what to prepare for.
Can you finance a private sale car?
Many lenders will finance a business car purchased from a private seller, not only from a dealership. The vehicle still needs to be intended predominantly for business use to qualify for business finance, and the same structures, such as a chattel mortgage, generally apply. The main difference lies in the additional verification a lender undertakes when there is no dealer in the transaction.
What checks do lenders do on private sales?
For a private sale, lenders commonly carry out extra checks to confirm the vehicle is what it appears to be and is free of any existing finance owing on it. This can involve verifying ownership, confirming there is no encumbrance registered against the car, and validating the seller's details. These steps protect both you and the lender, so it helps to have the vehicle and seller information ready.
How to make a private sale go smoothly
Because private sales carry more verification, allowing a little extra time before you commit to a purchase date can reduce stress. Gathering details such as the registration, identification numbers and the seller's information early helps the assessment move along. Any GST or depreciation treatment on a privately purchased business car should be confirmed with your accountant or registered tax adviser.
How to finance a private car purchase
Overdrive Business Vehicle Finance can identify lenders on its panel of more than 80 that finance private sales and guide you through the checks, all via one broker, Simon Kendrick. Ask for an obligation-free quote. The initial check is a soft enquiry that does not affect your credit score, with no obligation to proceed.
Ready to compare cheap rates?
Free quote in minutes, decisions in 24–48 hours. No credit-score impact to enquire.