Private Sale Auto Financing

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AMOUNT

$7.5K - $55K

INTEREST RATE

Starting at 8.99%

TERMS

12 - 96 Months

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AMOUNT

Up to $50K

INTEREST RATE

Varies

TERMS

Varies

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AMOUNT

$10K - $75K

INTEREST RATE

Varies

TERMS

12 - 96 Months

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AMOUNT

$7.5K to $200K (Refinance existing auto loan)

INTEREST RATE

From 6.93% (lower your auto loan interest rate)

TERMS

Up to 96 months

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Quick Links

What Is a Car Loan and Can I Get One for a Private Car Sale?
How Does a Private Party Auto Loan Work?
Auto Loan Key Terms
How To Apply for Private Sale Auto Loans
Buying a Car From a Private Seller - Important Tips
Frequently Asked Questions

What Is a Car Loan and Can I Get One for a Private Car Sale?

What Is a Car Loan?

car loan

What Is a Private Auto Sale?

Can I Get a Private Sale Car Loan?

How Does a Private Party Auto Loan Work?

The type of lender to borrow from - options include traditional lenders such as banks and credit unions, as well as online lenders and alternative lenders

The type of loan to use - you may be able to get either a secured loan or an unsecured loan, an auto loan, a personal loan, a secured line of credit or unsecured line of credit, and so on

The terms of the loan - how long you have to pay it back (known as the loan term), the interest rate you pay, the size (if any) of your down payment, any prepayment penalties, and so on

Because buying a car from a private seller puts the onus on the buyer to find their own financing, it's more important than ever to do your research and understand what car loans are available before you commit to a loan.

Auto Loan Key Terms

APR

Down Payment

Monthly Payment

loan calculator

Loan Term

Penalties and Other Fees

How To Apply for Private Sale Auto Loans

1. Understand Your Circumstances

2. Explore Your Car Loan Provider Options

3. Find the Right Vehicle

insurance

4. Get Pre-Approved

5. Complete the Loan Application

Looking to finance your dream car? Don't let limited funds hold you back! Explore the benefits of private sale auto financing and unlock your journey to the driver's seat.

Buying a Car From a Private Seller - Important Tips

Find out the fair value of the car before making an offer.

Many car sale websites have built-in tools that show whether a car is under or overpriced compared to its competitors, but not all do. Check the average sale price of the make/model/age of car you're interested in, to be sure you're paying a fair price.

Check out the history of the car.Consider a pre-purchase inspection.Perform a test driveDon't forget the paperwork.

Applying for a new license plate or transferring license plate from seller to buyer
Finalizing insurance
Completing vehicle registration
Performing a safety check or emissions test

Handover of the Used Vehicle Information Packet
Completing a Bill of Sale
Transferring the vehicle title
Transferring the vehicle permit at the provincial licensing office

Frequently Asked Questions About Private Sale Auto Financing

Do I qualify for a used car loan?

What is a good interest rate for a used car loan in Canada?

Can I get a car loan for a private sale with bad credit?

bad credit car loans

If a bad credit car loan isn't the right fit, don't worry - there are still options available. Consider a general bad credit loan that provides you with the flexibility to use the funds for a car or any other financial need. Explore your possibilities!

What are my used car loan options if I have no Canadian credit history?

Is it safe to fill out a car loan application online?

Where can I get a used car loan for a private vehicle purchase?

fromyour

How do I know how much to borrow for a personal loan for a private sale?

before

How do I get a used car loan in Canada?

What will I need to provide to finance a private auto sale?

How much do car loans for private car purchases cost?

What are the hidden costs of buying a used car privately?

Can I buy a used car if the seller owes money on it?

Expert Review & Editorial Standards

This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.

Reviewed By

Jenna West

Financial Writer & Content Director

Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.

8+ years analyzing Canadian consumer lending
Monitors FCAC and provincial regulatory changes
Specializes in personal loans and alternative lending

Written By

Amy Orr

Financial Content Specialist

Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.

Masters in Finance, University of Edinburgh
Former hedge fund professional
Published in major financial publications

About Smarter Loans

Canada's independent lending comparison platform since 2016. Trusted by over 2 million Canadians and recognized by the Toronto Star as "the GPS of FinTech Lending." Featured in the National Post and major Canadian publications.

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Verified Lenders Only All lenders verified for proper licensing and regulatory compliance

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Editorial Independence Content created independently from business relationships

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Regular Updates Content monitored and updated for rate changes and new regulations

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2M+ Canadians Served Helping Canadians compare loans since 2016

Our Editorial Process

Every page undergoes research, expert writing, fact-checking, and review by our Financial Content Director. We verify all rates, terms, and regulatory information against official sources including FCAC guidelines and provincial lending regulations.

Last Updated: October 10, 2025 | Next Review: Ongoing monitoring

Transparency

Smarter Loans is free for consumers. We may earn compensation from lenders when users apply, but this doesn't influence our editorial content or which lenders we list. All lenders must meet our standards for licensing, transparency, and customer service.

Consumer Protection

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