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Dealer and private-sale finance are not the same transaction
A private sale removes the licensed dealer from the transaction. That can produce a good purchase, but the financier has to resolve seller identity, ownership, vehicle condition, value and payment instructions through other evidence.
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| Issue | Dealer purchase | Private sale |
|---|---|---|
| Seller evidence | Licensed dealer and dealer invoice. | Seller identity, ownership and verified bank details may be required. |
| Vehicle evidence | Dealer invoice usually supplies structured vehicle details. | Sale agreement, VIN, registration, odometer and inspection evidence may be required. |
| Pricing and LVR | Some products allow a higher LVR for dealer sales. | A lower LVR, deposit or private-sale loading can apply under some policies. |
| Settlement | Funds are normally disbursed to the verified dealership. | Funds may need to clear an existing financier before any balance reaches the seller. |
| Fees | Standard establishment fee can apply. | Some lenders charge an additional private-sale fee or apply different pricing. |
The private-sale evidence pack
Requirements vary, but the reviewed policies repeatedly separated borrower approval from acceptance of the vehicle and seller. Prepare the transaction evidence before assuming settlement is ready.
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| Evidence | What to verify | What it does not prove by itself |
|---|---|---|
| Sale agreement or invoice | Price, deposit, seller, year, make, model, VIN and odometer. | That the seller owns the vehicle or that it is mechanically sound. |
| Seller identity and bank details | The seller named in the agreement matches verified payment instructions. | That the vehicle is free of finance. |
| Registration and VIN | Identifiers match the physical vehicle and all transaction documents. | Current market value or acceptable condition. |
| Independent inspection | Identity and condition through a lender-accepted process. | That no security interest is registered. |
| PPSR search | Registered security interests and certain stolen or written-off records. | Seller identity, ownership, mechanical condition or fair price. |
If the seller still owes money
Existing finance does not automatically prevent a sale, but settlement must clear the secured lender correctly. Obtain a current payout figure directly through the required process. A controlled disbursement can pay the existing financier first and direct only the verified balance to the seller.
Do not rely on a seller promising to repay the loan after receiving all funds. The encumbrance can remain attached to the vehicle if the secured debt is not discharged correctly.
The account balance visible in an app is not necessarily the payout figure. Interest, discharge fees and the nominated payout date can change the amount required.
Settlement and handover sequence
Do not let approval, payment and vehicle collection collapse into one informal step. Confirm which party is responsible for each action.
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| Stage | Action | Do not proceed until |
|---|---|---|
| Before final approval | Complete borrower, vehicle, seller, valuation and inspection requirements. | The lender confirms the selected vehicle and transaction are acceptable. |
| Before funds release | Provide signed documents, comprehensive insurance and verified payment or payout instructions. | Every settlement condition is satisfied. |
| At settlement | The lender disburses funds according to controlled instructions. | Settlement is confirmed rather than merely scheduled. |
| At handover | Check the vehicle, keys, service records, registration transfer and insurance. | The agreed payment and transfer steps have occurred. |
Action plan
What to do next
- 1
Check borrower and vehicle fit
Confirm the likely lender accepts the vehicle age, value and private-sale channel.
- 2
Verify seller and security
Complete identity, ownership, PPSR and any payout checks.
- 3
Settle safely
Follow verified payment instructions and complete registration and insurance steps.
Common questions
Frequently asked questions
Can I get finance for any privately sold car?+
No. Lender policy can limit vehicle age, kilometres, value, type and condition, and the borrower and proposed structure must also qualify.
What if the car has finance owing?+
A controlled settlement may pay the existing financier and any balance to the seller. Obtain and verify a current payout amount before proceeding.
Does a PPSR search prove the seller owns the car?+
No. PPSR reports registered security interests and certain status information. Seller identity and ownership still need to be checked separately.
Policy evidence: BaseRate reviewed current consumer and commercial vehicle-finance policy material from three Australian financiers, effective between February and June 2026. The guidance below describes recurring policy patterns and observed ranges. It does not reproduce a lender rate card, identify a lender rule or represent the whole market.
Primary sources
Check the rules and regulator guidance
Reviewed by Scott Iriks, Founder of BaseRate · Last reviewed 2 August 2026.
Policy-informed guidance summarises recurring criteria from reviewed financier documents without reproducing confidential commercial material. See the lender-matching and policy methodology.
General information only. A financier determines actual eligibility, rates, fees, terms and approval after assessment.