Private Sale Car Loans

Find the ideal car finance offer for your private purchase with Savvy. Access competitive rates and flexible borrowing options.

No obligation. It won't affect your credit score.
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, updated on July 4th, 2023       

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Buying a car loan from a private seller? Savvy can help

Buying your car from a private sale is a great way to save money not only on your vehicle purchase, but also your car loan. With low rates and flexible loan terms available whether you’re looking to buy for yourself or your business, Savvy is the best place to find your ideal private sale car loan.

At Savvy, we’re partnered with a wide range of over 25 diverse lenders that cater to your needs. All it takes to get started is a quick quote on our site, which will only take you a matter of minutes to complete, and you can have your application off and running today.

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How you can save with private sale car loans

Low, fixed interest rates

With competitive interest and comparison rates through our lenders, you can lock in your low rate and save across your loan.

Borrow anything upwards of $5,000

You’re able to borrow up to the maximum value of your car, plus on-road costs like rego and stamp duty.

Repay your loan between one and seven years

Being able to choose your loan term enables you to shape the size of your repayments to be more manageable for you.

Set your repayment schedule

Additionally, you can structure them around your own payment cycle, either monthly, fortnightly or weekly.

Add an optional deposit or balloon payment

Deposits are a great way to save on interest with a lump sum at the outset of your loan, while commercial finance customers can do so at the end with a balloon payment.

Car eligibility

Your car must be manufactured here, or imported here by its manufacturer, and never have been written off previously.

Applicant eligibility

Applicants must be over 18, a citizen, permanent resident or valid visa holder and earn a total of at least $26,000 annually.


Establishment (up to $600), early repayment (up to $600 to $900) and ongoing fees (up to $20) may or may not be charged, while late payments will incur fees between $25 and $50.

Why choose Savvy?

What do I need to do to get a private sale car loan?

Private sale car loans explained

Selling a car privately is a common way of selling cars in the current market. We often get asked, ‘Can I apply for a loan for the second-hand car I bought privately?' The answer is yes. Here is what you need to know about private sale car loans.

Can I get a car loan for a private sale?

Yes! A lot of people prefer to purchase cars via a private sale. Private sales provide buyers more room to negotiate. Negotiating a significant discount with dealerships is a lot harder as they have many overheads to cover costs such as rent, employee salaries, franchise fees and more. These fees do not apply to private vendors. Also sometimes, vendors are willing to sacrifice the car price a bit to get the sale done as soon as possible whereas a dealer usually can only go so far, they cannot discount further than what they call in the industry as ‘loading’.

On the finance side, whether you are buying privately or through a dealership is very similar. The lender's income and overall profile requirements for you are the same in both cases. However, a private sale car loan may require you to sign a few more documents when it comes to finalising the deal. Depending on how old the car is as well some lenders may load the rate for a private sale, as some lenders, view them a higher risk as the car doesn't come with warranties and certain protections that come with a dealer sale.

What does my vendor need to do?

There are a few documents that your vendor needs to provide. Most of them are required in the sales process, even if you are not applying for a loan. The necessary documents are registration papers, ID, top of a bank statement to confirm bank account details, and maybe an inspection report (states roadworthy) The lender will also require an invoice signed by your vendor to confirm all the final sale details. Your consultant will be able to create this and help your vendor to prepare documents.

What if the car I am buying is under finance?

If the car you are purchasing is already under finance, there is no need to worry., finance will still proceed as per normal. There are a couple of choices for you and your vendor: If you are not sure whether the car you are buying is under finance. You can check by completing a title search on the PPSR website.

Payout the loan first

Your vendor can payout the loan first if he/she has enough funds. This will save both of you some time and make the process easier. If that’s not possible however the vendor will need to provide the following details in order to proceed.

Provide a payout letter

Your vendor will need to provide a payout letter. A payout letter is issued by your vendor's lender. It contains essential information like:

  • how much does your vendor need to pay to exit the loan;
  • The due date of the payout letter;
  • Lender bank details;
  • A statement that the lender will lift their interest over the car, by releasing the interest on the title on the PPSR register once full payment is received.

Once your lender has this payout letter, they know where and how much to transfer the funds to your vendor’s lender to finalise the transaction.

What is going to happen if the payout amount is different from the car price?

  • If the car price is higher than the payout letter: Your lender will pay the amount owing to the vendor lender and the balance will be paid to the vendor.
  • If the car price is lower than the payout letter: The gap between the payout amount and the car price will need to be paid by the vendor before the lender transfers funds. Usually, the lender will require proof of payment (a transaction receipt) so that they can finalize the loan process for you.
  • Transfer car ownership. If the car was under finance, it takes a few business days after settlement for the current financier to lift their interest on the vehicle. You have 14 days to transfer the ownership of the car into your name.

Further answers about loans for private sale cars

What are the benefits of buying a used car privately?

Perhaps most importantly, used cars and cars bought privately are both factors that reduce the cost of your loan, as they’re generally cheaper to buy with more room for negotiation than new cars bought from a dealership.

There are also measures in place to help you avoid buying the car completely blind without knowing about a potential history of accidents and/or repairs.

What is a car history report and why is it important?

This report is conducted by an independent source, such as Equifax, and tells you about various important details you should know about the car you’re looking at buying. This includes aspects such as vehicle valuation, whether it’s been written off or stolen and information on its odometer readings.

It’s important to be aware of your car’s history to ensure that you’re not buying a vehicle with a track record of issues that could end up costing you more in the long run.

Am I able to buy a car of any age from a private seller with finance?

Yes – we can arrange for cars up to 20 to 25 years of age to be financed by one of our flexible lenders. Alternatively, if you want a car even older than this, we can help you arrange an unsecured personal loan to finance the vehicle instead.

Will a private sale affect my interest rate?

Yes – generally, used cars come at slightly higher interest rates than new ones from a dealership. The fact that they’re being sold privately also means that greater scrutiny is required on the part of your lender to ensure that the car meets their requirements.

Can Savvy help me access bad credit loans for private seller cars?

Yes – we can help you access bad credit car finance through our lenders. It’s important to note that loans of this nature come with higher interest rates and greater restrictions on the amount you’re able to borrow due to the level of risk associated with a lower credit score.

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