You’ve found the car you want.
It isn’t sitting in a dealership.
It’s sitting in someone’s driveway.
You’ve inspected it, driven it and agreed on a price of:
$36,500.
The seller wants to know:
“When will I get my money?”
And you want to know:
“If I’m borrowing the money, how does the seller actually get paid?”
This is where a private-sale car purchase becomes different from simply transferring money between two people.
When finance is involved, the lender will generally need the transaction to be properly documented and the vehicle and seller appropriately verified.
The process can depend on the lender and transaction, but one thing is important:
Don’t assume the lender simply deposits the loan into your account and leaves you to send $36,500 to the seller.
A Private Sale Can Still Be Financed
Consider a buyer in Wollongong.
They’ve found a late-model SUV advertised privately.
Purchase price:
$36,500.
The seller has owned it for several years.
The buyer has inspected it and wants to proceed.
They need car finance to complete the purchase.
At this point we need to understand:
- the buyer,
- the vehicle,
- the seller,
- the agreed price,
- and how settlement needs to occur.
Start With the Vehicle
Useful information may include:
- year,
- make,
- model,
- VIN,
- registration,
- kilometres,
- purchase price,
- and seller details.
Depending on the lender and transaction, further documentation or verification may be required.
The requirements can differ from one lender to another.
The Seller Needs to Be Identified
A private seller isn’t a dealership.
The lender may therefore require information that confirms who is selling the vehicle and that the transaction is genuine.
That might involve seller identification or other supporting information depending on the lender and transaction.
Why Does the Lender Care Who the Seller Is?
Because money is being advanced to fund a specific purchase.
The lender needs to understand what is being purchased and who is receiving the settlement funds.
That’s very different from someone sending you their BSB and account number in a marketplace message.
Make Sure the Seller Can Actually Sell the Vehicle
Suppose the advertisement is under David’s name.
You inspect the vehicle at David’s house.
Then the ownership information indicates someone else.
There may be a perfectly reasonable explanation.
But don’t simply ignore the discrepancy.
Tell the broker.
The transaction needs to make sense.
What if the Seller Says It’s Registered in Their Partner’s Name?
Again, tell us.
Don’t wait until the day settlement is supposed to occur.
If additional information is needed, it’s better to identify that early.
Agree on the Purchase Price
Our Wollongong buyer negotiates $36,500.
The vehicle was originally advertised for $38,000.
The agreed transaction is now $36,500.
That’s the figure we need to work with.
If the price changes again, tell us.
What if I’ve Already Paid a Deposit?
Tell the broker how much you’ve paid.
For example:
- Purchase price: $36,500
- Deposit already paid: $500
- Remaining amount due to seller: $36,000
Keep evidence of the deposit payment.
The final settlement needs to reflect what has actually happened.
Don’t Hide the Deposit Because “It’s Only $500”
A relatively small amount can still affect the settlement calculation.
We want the transaction to reconcile.
What if I’m Contributing Cash as Well?
Suppose you want to contribute $4,000 towards the purchase.
That also needs to be incorporated into the proposed structure.
Don’t assume every lender handles borrower contributions in exactly the same way.
The broker needs to know what you’re proposing.
Now Comes the Important Question: Is Finance Already Owing on the Car?
Ask.
And don’t rely solely on the seller’s verbal answer.
Existing security interests against a vehicle are an important consideration in a private purchase.
A PPSR search can help identify registered security interests and certain vehicle information.
What if There’s No Finance Owing?
That can make the settlement structure more straightforward.
Subject to the lender’s requirements, the settlement funds can be directed as required to complete the verified purchase.
But the lender still needs the appropriate vehicle and seller information.
What if Finance Is Owing?
Now settlement can become more involved.
Part of the purchase money may need to be used to clear the existing secured debt.
The balance, if any, may then be paid according to the settlement arrangements.
Don’t simply send all of the money to the seller and hope they pay the loan afterwards.
We’ll cover this situation in detail in Blog 7.
“Can’t the Lender Just Pay Me?”
Don’t assume that.
With secured car finance, settlement may involve funds being paid directly as required for the purchase, rather than the full loan simply appearing in your personal bank account.
The exact settlement method depends on the lender and transaction.
Why Would the Lender Pay the Seller?
Because the finance is being provided for the purchase of the vehicle.
The lender needs to know that the money is being used to complete that transaction.
Does the Seller Need to Do Anything?
Potentially.
Depending on the lender, the seller may need to provide:
- information,
- documentation,
- identification,
- bank details,
- or other verification required for settlement.
That’s why it’s useful to tell a private seller early:
“I’m using finance, so the lender may require some information from you before settlement.”
Some Sellers Become Nervous About Providing Information
That’s understandable.
They may never have sold a vehicle to a financed buyer.
They may ask:
Why do you need my ID?
Why does the lender need my bank information?
Why can’t you just transfer the money?
The buyer can explain that the purchase is being financed and the lender has settlement requirements.
If the seller refuses to provide information the lender requires, that may prevent the transaction from proceeding through that lender.
Don’t Ask the Seller to Send Sensitive Information to Random People
Follow the actual process provided by the broker or lender.
The seller should understand who they’re dealing with and why the information is required.
What if the Seller Wants Cash?
Suppose the seller says:
“I only want cash or a bank transfer from you.”
That may not fit the lender’s settlement requirements.
If you’re relying on finance, you don’t get to unilaterally decide how the lender will release its money.
Find out what settlement requires before promising the seller a particular payment method.
What if the Seller Wants Payment Immediately?
Private sales often come with urgency.
The seller says:
“First person with the money gets it.”
That’s their choice.
But don’t allow that pressure to make you:
- skip verification,
- misrepresent the finance status,
- or transfer money you don’t have.
Approval Isn’t the Same as Settlement
This distinction matters enormously in private sales.
You might have finance approval.
But settlement may still require:
- vehicle verification,
- seller information,
- documentation,
- conditions,
- or other steps.
Until those are completed, the seller hasn’t necessarily been paid.
Don’t Tell the Seller “The Loan Is Approved, You’ll Have the Money in an Hour”
Unless you actually know that settlement can occur.
A better approach is to understand what remains outstanding.
Private Sellers Don’t Always Understand Finance Timelines
The seller may be used to cash buyers.
They might think:
Approval = instant transfer.
Explain that finance settlement can require additional steps.
What if I’m Buying on Saturday?
This is where Thrive’s availability can be useful.
You might inspect the car Saturday morning.
The seller wants an answer that day.
Thrive Broking is available seven days a week.
We can start understanding the buyer, vehicle, seller, and proposed transaction without automatically waiting until Monday.
Can the Seller Be Paid on Saturday or Sunday?
In some circumstances, weekend settlement may be possible.
But it depends on:
- the lender,
- approval status,
- vehicle,
- seller,
- verification,
- documentation,
- banking arrangements,
- and other settlement requirements.
We won’t tell a seller:
“You’ll definitely have the money today”
until we know the transaction can actually settle.
Weekend Availability Still Has Value Even if Settlement Can’t Occur
Suppose one required step can’t be completed until Monday.
That doesn’t mean nothing can happen over the weekend.
We may be able to:
- understand the transaction,
- identify required documents,
- collect information,
- clarify the seller position,
- and determine what still needs to happen.
That can put the buyer in a much better position than starting everything Monday morning.
What if the Seller Is Interstate?
Tell us.
Private vehicle purchases aren’t always local.
The buyer may be in Wollongong and the vehicle may be elsewhere.
That introduces additional practical questions around:
- inspection,
- transport,
- transfer,
- vehicle verification,
- and settlement.
Don’t assume the transaction works identically because you’ve seen photos online.
Be Particularly Careful Buying a Car You Haven’t Seen
Finance doesn’t protect you from a poor purchasing decision.
The buyer remains responsible for appropriate due diligence.
If you’re purchasing remotely, consider what independent inspection, vehicle history, identity, and transaction checks you need.
Finance Approval Isn’t Proof the Seller Is Trustworthy
This is worth saying plainly.
A finance process doesn’t replace common sense.
If the seller’s story changes, vehicle details don’t match, ownership information doesn’t make sense, or you’re being pressured to transfer money unusually:
Stop and investigate.
What About a Mechanical Inspection?
That’s a buyer decision.
The lender or broker isn’t mechanically inspecting the car for you.
A used-car finance approval isn’t a warranty that the engine is good.
If you want mechanical reassurance, consider an appropriate independent inspection.
The Seller Says “Someone Else Is Coming at 3pm”
This is one of the most common pressures in private sales.
Maybe it’s true.
Maybe it isn’t.
Either way, you still need to buy properly.
Losing one car can be disappointing.
Losing thousands of dollars because you rushed is worse.
Let’s Return to Wollongong
Our buyer has agreed to $36,500.
They’ve provided Thrive with:
- the vehicle details,
- seller information,
- purchase price,
- and their own finance information.
They’ve also established whether existing finance is registered against the vehicle.
Now the transaction can be considered properly.
The seller knows finance is involved.
They understand information may be required.
The buyer hasn’t promised an impossible settlement time.
That’s a much cleaner private purchase.
What Should I Send Thrive?
If you’re buying privately, start with:
- the vehicle listing,
- year,
- make,
- model,
- purchase price,
- VIN and registration where available,
- kilometres,
- seller details,
- whether you’ve paid a deposit,
- and whether you know of existing finance.
Also tell us when you’re hoping to purchase.
What if I Haven’t Asked the Seller About Finance Owing?
Ask.
If you already have the relevant vehicle information, appropriate searches may also form part of the due diligence and settlement process.
What if Everything Looks Fine?
Then the finance process can continue based on the actual buyer, vehicle, seller, and transaction.
Further information may still be required depending on the lender.
Private-Sale Finance Doesn’t Need to Be Mysterious
The buyer needs finance.
The lender needs to understand the transaction.
The vehicle needs to be appropriately identified.
The seller needs to be appropriately verified.
Any existing finance needs to be properly dealt with.
And settlement funds need to go where they are supposed to go.
That’s the basic commercial logic.
Buying a Car Privately and Need Finance?
Send Thrive Broking:
- the vehicle details,
- purchase price,
- seller type,
- whether you’ve paid a deposit,
- and whether the vehicle appears to have existing finance.
If you’ve found it Saturday or Sunday, send it then.
We’re available seven days a week.
We’ll help work through what information is required, how the proposed finance may be structured, and what needs to happen for settlement.
Because with a financed private sale, the important question isn’t only:
“Can I borrow the money?”
It’s also:
“How does that money get safely from the lender to the right place so I can actually buy the car?”