Can you get a car loan for a private sale?


Short answer: Yes, you can get a car loan for a private sale! There are just one or two differences in comparison to buying from a dealer, but the process is largely the same. 


Read more: What are your options for financing a car in New Zealand?



If you decide to get a car loan through Avanti to buy a car, the application process is the same whether you’re going through a dealership or through a private sale. Typically, you make an application, we assess your finances and how much you want to borrow, check some details on the vehicle you want to buy, and come back to you with an answer.

If you’re buying from a private seller, we’ll send you a private sale agreement form for you and the vendor to complete, to record the sale after you’ve made your application. We’ll also ask the vendor for their identification documents and their bank account. This ensures the details of the purchase, e.g. price and vehicle details are agreed to up front and that there are no issues later on. 

Once we have this information, we give the vendor a call to confirm the sale price and their details. We then release the funds, and the car is all yours.



The car loan process is the same, but if you’re planning to buy a car through a private sale, we’ve got a few tips and tricks for you first:

  • Get a pre-purchase inspection. This could be through a local mechanic or VTNZ. You have to make sure there aren’t any unknown issues with the car. Remember that a private sale doesn’t protect you under the Consumer Guarantees Act like buying from a dealership does, so you have to be especially sure. 
  • Check the PPSR. This is the personal property securities register. You can use the car’s rego to check if it has any money owing on it. The buyer should tell you - but they don’t always. TradeMe may do this automatically for you, but if you’re buying through another means, better to check. CarJam or Motorweb may be a good place to start.
  • Consider getting pre-approval. Before you set your sights on a particular car, you can get pre-approval on the loan to find out how much you can borrow. Just give us a call and we’ll sort you out, then you can start negotiating with confidence in how much you have to spend.
  • Mechanical breakdown cover is available for both. We offer mechanical breakdown insurance for both dealership sales and private car sales.

It’s just as easy to get a car loan for a private sale as it is for a dealership, with just a couple of differences in paperwork. To get pre-approval for your next car loan or to get things kicked off, start an application for vehicle finance through Avanti Finance today.

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