The Car Loan Warehouse | How To: Car Finance for Private Sales

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How To: Car Finance for Private Sales

June 1, 2016

Buying a car privately comes with its benefits and is the preferred choice for many shopping the second-hand market. When it comes to buying a used car, dealerships are often limited to their current stock – whereas the private market gives you the freedom to buy exactly what you want without compromising on the make, model or condition.

That being said, if you need a little help to fund your next car, car finance for private sellers can be hard to come by. At The Car Loan Warehouse, we don’t want you to miss out on your dream car – that’s why we offer a wide range of flexible car finance deals for both private and dealership sales. In today’s post, we’re taking you through the ins and outs of private car finance – from which documents and paperwork you’ll need to your basic rights and responsibilities when making a purchase.


What are the benefits of buying a car from private seller?

One of the best reasons to shop from the private market is the choice available. A number of auto sites and directories list private sales all over the country, giving you access to thousands of used cars for sale – and more choice often means better deals. While dealerships are essentially there to make a profit, many private sellers just want to get rid of their old car – meaning you’re more likely to snag a bargain on the private market.

When it comes to affordable car finance, private sellers often hold the best bargains – and the lower the list price of your car, the less money you’ll need to repay every month.

What documents do I need when purchasing from a private seller?

Many dealerships offer warranties with their used cars, giving you some legal comeback should anything go wrong with the car. Unfortunately, this kind of protection doesn’t exist on the private market, so it’s vital that you gather as much information as you can about the vehicle’s history. If you’re planning on getting car finance, private sales can be especially tricky – as without the financial protection offered by a dealership, you could find yourself owing money on a car that doesn’t even start!

While you should be aware of the risks, you shouldn’t let it put you off a private purchase. Ask the seller for the car’s service book and last MOT certificate. The service book should be filled in regularly, with stamps from the garage carrying out the work. A flick through its pages should give you an indication as to whether the car has suffered from any major mechanical faults in the past and regular servicing is a good indicator that the previous owner looked after the vehicle.

Make sure the seller has the vehicle’s V5C document, checking that the vehicle identification number, engine and colour of the car match the paperwork. It’s also worth paying for a vehicle history check, which will reveal the car’s MOT history as well as any outstanding finance.


Can I test and view the car?

Once you’ve confirmed the seller is legitimate and has all of the necessary paperwork to hand, it’s essential to test drive the car before sealing the deal on a private sale. Car loan companies will often perform their own checks on the vehicle before transferring the cash, but it’s important to make sure you’re equally happy with the vehicle.

Make sure you view the vehicle during the day, thoroughly inspecting the body work for any change in paint colour or texture – which could indicate repaired bodywork. Don’t feel pressured by the seller and take your time driving the car on a variety of roads to ensure it handles as expected. Check out our blog post on test drive etiquette for tips and advice on what to look out for during your test drive – giving you peace of mind that you’re not buying a banger!

Click here to find out more about car finance for private sales or try our car loan calculator for an instant finance estimate. Alternatively, if you ready to buy, simply apply online today. Once we’ve reviewed your application, we’ll get back to you within an hour with a decision. We can even approve finance in advance, meaning you can go out and browse to your heart’s content, safe in the knowledge that the funds are ready and waiting.

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About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.