It might be news to a few people, but using a car finance company can make the private purchase of a used car or ute a lot more secure than when you go it alone. Not only that, but with the right finance company, you can get a car loan with interest rates as attractive as if you are buying from a dealer.
In previous articles, we explained why some companies will only offer you a secured loans or a high interest unsecured loan if you want to buy a used car from a private seller. This seems strange when you think that used cars are the largest sector in the vehicle market, but it makes sense when you consider how fraught with risk buying a used car privately can be.
If you make a mistake, it’s not good for you and it’s not good for the lender. It’s a lose-lose situation.
The good news is that some companies such as 1800Approved turn this into a win-win situation by improving their service. By taking steps to ensure the sale is a sound one, we help you get the best possible deal on interest rates. The outcome is less risk for you - and less risk for us. Here’s how it works with 1800Approved;
Is the Sale Genuine?
Lenders have several concerns about risky used car sales. First, they want to know that you’re using their money to buy the vehicle, and nothing else. No car finance company is going to give you a cheque to walk away with and spend as you wish, but will always pay the seller directly.
By contacting the seller, we can verify details of the sale, and obtain details of the seller’s bank account and their driving licence. This reduces our risk immediately.
Is The Seller Genuine?
The other reason we need to identify the seller for these details is to ensure that they are legitimate. A fraudulent seller is unlikely to provide bank details and a home address, so just checking these details reduces risk straightaway. In return, the seller benefits from our written sale agreement.
We also ask the seller for information such as the car’s current registration certificate. If the car has previously been bought with finance, we will ask for a copy of the pay-out letter from the previous financer and organise the transfer. We then know how much money should go to the other financer, and how much to the car’s seller.
Is The Car Genuine?
We always request photos of the car and a copy of the vehicle inspection report. In addition to the mechanical inspection, we check that the VIN, registration and odometer are correct. We also check the vehicle's history for insurance write-offs, and check the Personal Property Security Register (PPSR) Certificate to make sure there are no outstanding loans on the vehicle. All this, which is at no cost to you, enables us to check that the price is realistic. That way, you benefit from knowing there's less risk in the purchase, and we are satisfied that we are supporting a good car purchase at the right market value.
Low Risk, Wider Choice with 1800Approved
When you buy a car with cash on the first day you see it, you may catch a great bargain. However, there’s a risk that you could be rushing into an expensive mistake. With our car finance, you can reduce that risk. To smooth the process along and speed things up, it’s worth contacting us first, so that we can start talking to our panel of over 40 lenders on your behalf.
Need finance for a new vehicle ? Contact 1800Approved
1800Approved is an award winning finance broker - Australia's Broker of the Year for 2016 !
We have helped tens of thousands own their dream car, boat, holiday, jetski or caravan and/or finance business equipment.
Let us help you finance your dream car today.
Call us at 1800 277 768. No obligation.