Quick answer
Private sale asset finance is a loan or lease used to buy an asset from an individual or business that is not a dealer. The lender checks the seller owns the item and that no finance is registered against it. Ownright Custom Finance arranges private sale asset finance Australia-wide for vehicles, machinery, boats and equipment.
Key points
- Cars, trucks, machinery, boats and equipment can be financed from private sellers
- The lender needs proof the seller owns the asset and nothing is owing on it
- A PPSR search is a central step for the buyer and the lender
- Settlement is arranged so the seller is paid safely
- Suits
- Buyers purchasing from individuals, other businesses or online listings
- Security
- The asset being bought
- Structures
- Chattel mortgage, secured loan or hire purchase
- Australia-wide
- Yes
What is private sale asset finance?
Private sale asset finance helps you buy something from a person or business that is not a licensed dealer. It might be a ute listed online, a tractor from a neighbouring farm, a boat from a marina notice board or a lathe from a business that is winding up. The lender pays the seller, you repay the lender and the asset becomes the security.
The finance is similar to dealer-supplied finance. The difference is in the checks. A dealer has a reputation and a process. A private seller does not, so the lender tests more things before releasing money.
Why do people buy privately?
- Prices are often lower than dealer retail
- The exact item, spec or age is not available through dealers
- A trusted seller is moving on and wants a simple transaction
- A business closure or upgrade puts good gear on the market
- Private auctions or online marketplaces list the item
All of these are legitimate. They just call for a tidy process.
What do lenders check on a private sale?
Ownership. The seller must have the right to sell. Registration papers, invoices or previous finance documents help prove this.
Encumbrances. A search of the Personal Property Securities Register (PPSR) shows whether finance is registered against the asset. Vehicles, machinery and many other items are listed by serial or identification number.
Identity. Lenders confirm who they are paying and that the bank account matches.
Condition and value. For older or higher-value items, a lender may ask for an inspection, a condition report or a valuation. Our used equipment finance page covers age limits and condition.
The borrower. Income, credit history, other debts and the reason for the purchase.
What can be financed in a private sale?
| Asset type | What the lender often asks for |
|---|---|
| Cars and utes | Registration, VIN, roadworthy where required, PPSR check |
| Trucks and trailers | As above, plus hours or kilometres and condition |
| Machinery and plant | Serial number, service records, inspection |
| Boats and vessels | Registration papers, bill of sale, survey if available |
| Workshop and shop equipment | Serial numbers, invoices, photos |
For vehicles, see car loans and truck finance. For vessels, our marine vessel finance page explains why registration and the PPSR matter.
How do you stay safe when buying privately?
Before paying a deposit, do a few things. Search the PPSR for the serial number or VIN. Confirm the seller’s ID matches the name on the paperwork. Compare the listing with the item in person. Get a written contract. Avoid transferring money to someone you have not met. The PPSR and MoneySmart websites both explain buying second-hand safely, and a lender’s own checks add a second layer of protection.
How Ownright arranges private sale finance
Trevor Scott and the team know that private deals move at human speed. A seller may have three other buyers, or an auction clock, or a home to move out of. We ask the timing first, then check which lender can meet it. Speed can be possible, but it depends on the lender, the asset and how quickly documents arrive.
We also look for lenders who like the unusual. If an asset is too old for one lender or too specialised for another, we search for a third. We work Australia-wide, including for buyers who are purchasing from sellers in another state. Choose the structure with care; the chattel mortgage page and the guide on types of loan security help explain what the lender is actually taking.
An illustration
Illustrative scenario only. A landscaper finds a second-hand truck advertised by a private seller in another state. The buyer has solid income but only a small deposit. A broker could find a lender that accepts private truck sales, run a PPSR search, confirm the seller’s details and arrange settlement so the seller receives payment on transfer of the vehicle.
Can a private sale be financed with poor credit?
It can be possible. Lenders vary: some are strict about both credit and private sales, while others prioritise the asset and the deposit. A larger deposit and a clear story help. See our bad credit asset finance page for more.
Mistakes to avoid
- Paying a deposit before checking the PPSR
- Trusting a seller’s word that nothing is owing
- Skipping a written contract
- Buying something a lender will not accept because of age or type
- Applying to several lenders at once and leaving multiple enquiries on your file
Documents to have ready
- Advertisement or listing and agreed price
- Seller’s name, contact details and proof of ownership
- Asset identification: VIN, serial number or hull number
- Your ID, income documents and asset and liability list
- Any inspection or valuation reports
The guide on what documents you need for a loan covers the usual requests.
What does settlement look like on a private sale?
Settlement is where private deals either run smoothly or go wrong. In a typical arrangement the lender confirms its checks, the documents are signed, and the lender pays the seller directly, or pays the seller’s own lender first if there is a debt on the asset. In return the seller hands over the asset and the paperwork needed to transfer ownership. Where the item is registered, such as a vehicle or boat, transfer forms are completed with the relevant authority. Agreeing the sequence in advance keeps both sides comfortable.
What if the seller is a business rather than an individual?
A private sale by a company, sole trader or partnership is still not a dealer sale, so many of the same checks apply. The lender will want to confirm the business owns the asset and has authority to sell it, and may ask for a tax invoice showing GST details. A business closing down or upgrading is a common source of excellent second-hand equipment. Having the right paperwork up front makes it much easier to move quickly, and the guide on how to gather contracts, leases and invoices can help you collect it.
Found something good from a private seller?
Sounds like you’re looking for private sale asset finance. We’re the lending experts in making private deals bankable, so see if you qualify and let us look after the lender side.
How it works, step by step
- 1
Step 1
Send the listing or agreed price and the seller's details.
- 2
Step 2
We find lenders who accept private sales for that type of asset.
- 3
Step 3
Ownership and finance searches are carried out before money moves.
- 4
Step 4
Paperwork is signed and the lender pays the seller on agreed terms.
Frequently asked questions
Can I get finance to buy from a private seller?
Yes, many lenders will fund private sales, though not all. They typically ask for a signed contract or bill of sale, proof of the seller's identity and ownership, and a search showing no existing finance. We know which lenders handle private sales and which do not, saving you wasted applications.
What is a PPSR search and why does it matter?
The Personal Property Securities Register shows whether someone else has a registered security interest in an asset, such as a lender with a claim over a car or machine. Buying without checking can leave you with a debt problem that is not yours. Lenders search it, and buyers can too.
Is private sale finance harder to get than dealer finance?
It can involve more steps, but it is not necessarily harder. A dealer provides a clean invoice and established process. A private sale needs extra checks on ownership and identity. Good preparation lets the process run smoothly. We tell you what each lender will ask for.
How is the seller paid?
Usually the lender pays the seller directly once documents are signed and checks are complete, or the funds go through a settlement arrangement. Sellers may be wary of waiting, so agree timing early. Speed depends on the lender, the asset and how quickly documents arrive.
What if the asset has finance owing on it?
Then it must be paid out at settlement so the buyer receives a clean title. The seller's lender provides a payout figure, and the new lender pays that first. It is common but needs coordination. We help with the order of payments so the asset transfers cleanly.
Can I finance a private purchase with bad credit?
Sometimes. Because there is no dealer behind the deal, some lenders are more cautious, but others focus on the asset and deposit. We ask about the credit history first and approach lenders with an appetite for private sales and tricky files.