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Compare Private Sale Car Loan Rates in 60 Seconds

  • Instant online quotes from top Australian lenders
  • Low private sale car loan rates tailored to you
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Private Sale Car Loans with Money Matchmaker

Compare some of the best private sale car loans

We display all private sale car loans on our database and we’re not paid by lenders if you click through to their website. The table is sorted by lowest interest rate. Use the filters to search for your best private sale car loan options. Read the comparison rate warning and other important information.

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Rates updated 02 December 2024

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Why compare private sale car loans with Money

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Multiple Australian lenders to choose from

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Personalised rates

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No credit score impact

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Can I get a car loan for a private sale?

Yes, most lenders in Australia offer private sale car loans. This means you can buy a car privately using finance and use the vehicle as security for your loan.

In most cases, a private sale car loan is the same as any other kind of car finance. But lenders generally require more information and checks to be carried out when lending for a private sale. This is simply because there is generally greater risk and uncertainty involved compared to a loan for a dealer sale.

Buying a car through a private sale is pretty common in Australia. In fact around 45% of all used car loan requests through Money.com.au are for a private sale vehicle (the remainder are sales through a dealership).

Our data shows:

  • The average private sale car loan amount requested is $27,322
  • The average age of the private sale vehicle being financed is 10.06 years
  • Five years is by far the most common loan term selected

How to get a private sale car loan in Australia (step-by-step guide)

When comparing private sale car loans, look at the interest rate, fees charged and the loan features (particularly ones that will help you pay off the loan early). You can use our car loan calculator to work out how much each loan you compare will cost overall.

While most lenders in Australia will offer private sale car finance, double check this before submitting an application. Some lenders may have stricter criteria (e.g. for the car’s age) for private sale car loans.

Once you decide on the most suitable private sale car loan, apply for pre-approval. This will mean you know at an early stage how much a lender is prepared to lend to you. The lender will ask you to provide documents to support your application (pay slips, bank statements etc.).

With pre-approval secured, you can approach private car sellers confident in your budget. Getting car loan pre-approval can also mean a faster sale once you have found the car you want.

Be sure to use a reputable website or app when searching for private sale cars. You should be able to filter cars based on your pre-approved private sale car loan amount. To protect yourself, pay attention to the consumer protections for buyers in a private car sale. The protections vary by state and territory as follows:

We'll explain more on this below, but to summarise, it's important to check that the car:

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  • is not stolen;
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  • is not a write-off;
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  • does not a security interest registered against it (i.e. is not already being used as security on another loan).

A Personal Property Securities Register (PPSR) check will provide this information. In addition, you should check that the car is mechanically sound.

These checks will not only help make sure that the car you’re buying is fit for purpose, but could also help avoid a loan rejection if the lender discovers an issue with the car.

Before giving full approval on a secured car loan for a private sale, the lender will want to know about the car you're buying. This will include information about the type of vehicle it is, its age and model.

The lender will also typically seek verification of the vehicle seller’s identity, that they are the registered owner for the vehicle (registration certificate) and will ask to see photos of the vehicle. Lenders usually use a tool such as Verimoto to perform these checks. As a final step, the lender will ask for proof that you have taken out a comprehensive car insurance policy to cover the car. A lower level of third party car insurance generally will not be enough, as it may not cover the value of your car if there is an accident.

If the lender is happy, it will approve your private sale car loan and transfer the money to the private seller. In the case of an unsecured loan, the lender will simply transfer the loan funds to you so you can complete the purchase.

Finding the best private sale car loans

Shaun McGowan Money.com.au founder

Shaun McGowan, Money's founder and loans expert

"Don’t limit yourself to lenders specifically advertising ‘private sale car loans’. Chances are if the car you’re buying privately is in good condition and not too old, any lender offering car loans will consider you for finance. This means you can keep your options open and give yourself the best chance possible of securing a good deal."

Shaun McGowan, Money's founder and loans expert

What are the interest rates on private sale car loans?

Interest rates on private sale car loans in Australia generally start from around 7.00% - 8.00% p.a. This is similar to other types of used car loans.

Just bear in mind that some lenders view car loans for private sales as being riskier. If this is the case, a higher interest rate could apply. Lenders will also consider factors like your credit record, income, employment history and living situation when setting the interest rate on your private sale car loan.

The age of the car is also a factor. Analysis by Money found that, on average, cars bought through a private sale (10 years) are older than those purchased through a dealer (6.2 years). Older cars typically attract higher rates.

Vehicles financed through a private sale loan

Vehicles bought through private sale loan

Can I get a car loan for a private sale if the vehicle is already under finance?

It’s generally still possible to get a private sale car loan if the vehicle you’re buying has an existing loan on it.

A vehicle with finance owing on it is ‘encumbered’, to use the industry jargon. If this is the case, your lender will pay your loan funds to the seller’s lender to cover the remaining balance.

Here’s how that process would work:

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The seller of the vehicle will need to request a payout letter from their finance company and have this sent directly to you.

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Your lender will settle the remaining balance by paying the amount specified in the payout letter directly to the seller’s finance company. In car finance-speak, the vehicle is no longer encumbered.

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If the car’s sale price is more than the seller’s loan balance, your lender will pay the difference directly to the seller.

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Never pay the seller the full sale amount directly if the vehicle is still under finance. If the seller decides to not repay their loan, the car you have purchased may be repossessed to cover the debt.

Tips on buying a car through a private sale

Buying a vehicle through a private sale can save you money. Money data shows borrower's request smaller loans for private sales (albeit the average car age is higher).

But a private sale is very different to getting a car from a certified dealer. For example:

  • You don't have the same consumer protections.
  • This means you are responsible for all checks on the vehicle.
  • Once you purchase the car privately, you assume full responsibility.
  • You cannot take the car back after buying it.
  • Unfortunately, some people selling cars privately do so with the aim of ripping off buyers.

For example, the vehicle might have undisclosed mechanical problems, be a repaired write-off or still be under finance without you knowing.

Other sellers may simply be unaware of issues with their vehicle. Either way, it’s important to protect yourself at all stages when buying a car privately.

How to check a car before buying privately

First, get a professional, independent mechanic to inspect the vehicle. Make sure they look for evidence of any dodgy crash repairs. Second, apply for a CarHistory report. This is an easy-to-understand vehicle report you can get for $39 online. You could apply for and view the report on your phone there and then while you are inspecting the vehicle. The report will include:
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A PPSR (Personal Property Securities Register) Certificate indicating any existing finance on the vehicle

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Details if the vehicle has suffered damage resulting in a written-off status

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The vehicle’s odometer history

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Previous sale listings for the vehicle

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Vehicle safety and emission ratings

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An estimation of the vehicle’s value on the market

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Car loan guides & resources

Let us guide you on the road ahead with our simple calculators, comparisons and explainers.

FAQs about private sale car loans

Most lenders, including the banks, will offer loans to borrowers buying a car from a private seller. Of course, they will need to check that the vehicle you’re buying is suitable to be used as security if you’re applying for a secured car loan.

They’ll also assess your ability to repay the loan based on your income and other expenses.

A common alternative to getting a car loan to buy a vehicle is a novated lease. With a novated lease your car finance repayments are made to the finance company by your employer from your pre-tax salary.

Novated leases can typically be used for new or used cars, but not all employers offer this arrangement.

Another option to consider is whether to get finance with or without a balloon payment.

A car loan with balloon payment reduces your regular repayments but you will need to make a large one-off repayment at the end of the loan term in order to own the vehicle.

If you are a business owner looking to buy privately, you could consider finance through a specialist ABN car loan.

To pay for a car through a private sale, either your lender will transfer your loan funds directly to the seller based on your instructions, or the loan funds will be paid to you for you to make the payment to the seller.

It's important to take care when making the payment for a car bought through a private sale as you do not have the same consumer protections as you do when buying from a dealer.

Be careful here. In some situations, the seller of the vehicle might ask you to pay a deposit while you’re waiting to get approved for finance. Having pre-approval on your finance can be a big help here.

If you do pay a deposit and something goes wrong, there may not be much you can do if the seller won’t give you your money back. The advice from CarHistory is to ensure that any conditions on the deposit are made clear in writing. For example, under what circumstances will the deposit be returned or not?

The best thing to do in this situation may be to seek advice from your lender. Or if you’re really not sure, get legal advice.

There is no ‘one size fits all’ answer to the question of how much you should pay if you buy a car privately.

If you have requested a CarHistory report, the estimated value of the vehicle will be included in the report.

Another good vehicle price-estimation resource is RedBook.Its pricing is for standard vehicles in average condition for their age and with average kilometres travelled.

Also take into consideration factors like modifications, mileage, what the car was used for, and the its overall condition when comparing it with other listings.

Getting finance for a private car purchase won't necessarily be harder if you have bad credit, but it may be more expensive. Lenders who offer bad credit car loans typically charge higher rates because of the extra risk involved.

A private sale can also be viewed as more risky by lenders, compared to dealer sales. This could also push your interest rate higher.

Jared Mullane is a finance writer with more than eight years of experience at some of Australia’s biggest finance and consumer brands. His areas of expertise include energy, home loans, personal finance and insurance.

Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.

Important information

Unless otherwise stated, car loan comparison rates are calculated based on a loan amount of $30,000 repaid over a 5-year term. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

General information only The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any car loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular car loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

What products, features and information are shown While we make every effort to ensure all car loans available in Australia are shown in our comparison tables, we do not guarantee that all products are included.

Our product comparisons may not compare all car loan features and attributes relevant to you. Product information, such as interest rates, fees and charges, is subject to change without notice. Before acting on any information, you should confirm the relevant product information with the lender.

How car loans are sorted and filtered by default Users can easily change the sort order and apply product filters to our product comparison tables. However, when you arrive on a page initially, by default car loans are sorted by:

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  • Lowest loan interest rate, then;
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  • Lowest establishment fee, then;
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  • Lowest ongoing fee, then;
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  • Provider name (A-Z)

Some car loan products listed in our tables are available through a broker. These are the products with an option to ‘Check Eligibility on Money.com.au’. Brokers may not be able to offer loans from every provider and there may be more suitable loans for your personal circumstances.

Brokers are not authorised by Money's Australian Credit Licence and operate under their own Australian Credit Licence, or as a credit representative of another Australian Credit Licensee. Brokers can make recommendations about loan products that may suit your objectives, financial situation and needs.

Our tables feature all car loans available from lenders on our database that match the search criteria selected. Lenders do not pay to feature in our tables, nor do we earn commission if you click to visit a lender’s website. The order of the products in the table is not influenced by any commercial arrangements.

If you get a car loan as a result of visiting this page, we may earn a commission.

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Money Pty Ltd (trading as Money) (ABN 42 626 094 773) Australian Credit Licence 528698 provides information about credit products. Money does not compare all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. We may receive a commission when you apply for a home loan as a result of outbound links on this website.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

The information on this website is intended to be general in nature and has been prepared without considering your objectives, financial situation or needs. You should read the relevant disclosure statements or other offer documents prior to making a decision about a credit product and seek independent financial advice. Whilst Money.com.au endeavours to ensure the accuracy of the information provided on this website, no responsibility is accepted by us for any errors, omissions or any inaccurate information on this website.

Interest rates, fees and charges are subject to change without notice. Before acting on any information, you should confirm the interest rates, fees, charges and product information with the provider. For clarity, where we have used the terms “lowest” or “best” these relate solely to the rates of interest offered by the provider and not on any other factor. The application of these terms to a particular product is subject to change without notice if the provider changes their rates.

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Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
  • Results are approximations and may differ from actual payment schedules or amounts.
  • The calculator does not include all fees and charges that you may incur in relation to a financial product.

Limitation

  • This calculator does not guarantee the availability of any financial product or the accuracy of the calculations. Please consult a financial advisor or the relevant product provider to obtain specific advice tailored to your circumstances.
  • money.com.au does not accept any liability for errors or omissions, or for any loss you may suffer as a result of relying on these calculations.
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Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C)
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