Can I use a used car loan to purchase a vehicle from a private seller?

Yes, a used car loan can be applied against vehicles bought from private sellers versus a dealership. There are numerous used car loan providers in India who will accept this approach but there are a number of extra steps to ensure you are buying a safe car and the history of the vehicle is fine

When you are purchasing a vehicle from a private seller, the lender will want to do sufficient due diligence to make sure everything is in place. These are the considerations you should expect:

1. Ownership & property check - The lender will check/confirm the seller is the legitimate owner of the vehicle. You will need to present the registration certificate (RC) of the vehicle, up to date insurance documents and a sale agreement signed by both the buyer and seller.
2. Physical inspection / inspection - The lender will also take a professional view in terms of the physical condition of the vehicle including the extent of repairs/accidents, and the VINs to confirm that they match the documents you have provided to the lender in person.
3. Valuation Report - Lender's will usually do an independent valuation of the vehicle in order to identify the market current value, to determine how much they will lend to you, and adjust any terms and conditions as required.
4. Supporting documentation - In addition to the standard KYC and income documentation, a buyer may require you to provide photographs and proof of address, and proof of employment before purchase.

If you implement the considerations shown above, it will make the loan process for you easier and relieve you of any headaches in the future from owning a vehicle.