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Organising Private Vehicle Finance - Perth


You may be familiar with securing vehicle finance when purchasing a new or pre-owned car from a dealership, but you may be unsure how to proceed if you’re buying a car through a private sale. Fortunately, it’s not nearly as hard as you think.

Here’s are a few tips for organising private vehicle finance.

Check Your Credit Score

The first thing to do is to check your credit score. There are a few online resources that help you do just that. Your credit score will decide the interest rate of your loan, so this is an essential first step in organising private vehicle finance.

Understand Your Budget

Your monthly car budget should not exceed 20% of your take-home income, as a general rule. Use an online car finance calculator to work out how much that comes to based on your income.

Find Your Car

With an idea of your budget for a car in mind, look for cars within your budget. Scour the Web and local classifieds to pin down the car that meets your needs. After you’ve found your car, ask the seller for the vehicle identification number (VIN) so that you can order a car history report. This will come in handy when you approach a lender.

Get Financed

Take the car history report and a description of the vehicle you’d like to finance to a few lenders to see what kinds of offers they make. Keep in mind that lenders are competitive and will vary in terms of the kinds of loans they will issue. Various lenders will also treat your credit score differently, so it pays to shop around.

Seal the Deal

The last step is to arrange for the transfer of the purchase. Your lender may give you a cheque to give to the seller or arrange for funds transfer directly to the seller’s bank account. In either case, be sure to get a receipt for the sale, before you drive your new car home.


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