Looking to buy a used powersport vehicle in a private sale? Buying through a private sale is popular among buyers because it often provides more selection and better prices compared to dealerships. The challenge, however, is that private sellers don’t offer financing and expect full payment upfront. This means you must secure your own financing before completing the purchase.
Understanding how private sale powersport vehicle financing works can help you get the vehicle you want without draining your savings.
Key Points:
- Financing is available for private-sale powersport vehicles, but buyers need to arrange their own loan since private sellers require full payment upfront.
- Banks often don’t finance private sales, so buyers typically work with private or alternative lenders that specialize in flexible powersport financing.
- Extra due diligence is required, including VIN and lien checks and inspections, since private sales are usually “as-is.”
Can You Get Financing For A Powersport Vehicle In A Private Sale?
Yes, you can get financing for a powersport vehicle in a private sale. The process works much like a car loan: first, you find the vehicle you want, then you apply for financing through a separate lender that supports private sales.
In these cases, the loan is secured against the value of the powersport vehicle, which means the lender uses the vehicle as collateral. If you default on your loan payments, the lender has the right to repossess the vehicle. This makes lenders more willing to provide financing, even for borrowers who may not have perfect credit.
| What Is Considered A Private Sale? A private sale happens when you buy a vehicle directly from an individual seller rather than through a dealership. For example, you might buy an ATV from someone advertising on Facebook Marketplace or a motorcycle from a neighbour, which would both be considered private sales. Since no dealership or business is involved, you must arrange your own financing and handle all paperwork yourself. |
How Does Private Sale Financing Work For Powersport Vehicles?
To finance a powersport vehicle through a private sale, follow these steps:
Step 1: Find The Vehicle
You’ll need to find the powersport vehicle you want before applying for financing. You can find used powersport vehicles on several online platforms, like Kijiji, Facebook Marketplace, and AutoTrader.
Step 2: Find A Lender
Next, you’ll need to find a lender that offers private sale financing, like Spring Financial. Lenders typically have restrictions on the powersport vehicle you wish to finance, including the vehicle’s make, model, age, condition, and title.
Step 3: Apply For Financing
Submit an application with the lender of your choice. You’ll need to provide your personal information such as your name, address, income and more. You may also need to provide certain documents to prove your financial health and identity, such as:
- Photo ID (driver’s license, passport)
- Proof Of Residency (utility bill, lease agreement)
- Proof of income (Employment letter, bank statements, pay stubs)
- Vehicle info (make, model, age, mileage, condition, title, etc)
Depending on the lender, a credit check may also be required. You may want to check your credit score before applying for a loan, which you can do quickly and for free using CompareHub.
Step 4: Get Funded
Once approved, the lender provides funding either directly to you or to the seller. Some lenders issue a cheque or electronic transfer made out to the seller to ensure the funds are used for the purchase.
| Note: Financing terms may vary depending on the lender and the vehicle. More specifically, lenders may have restrictions on financing based on the vehicle’s age, value, salvage titles, and heavily modified vehicles. |
Dealership Financing Vs. Private Sale Financing
There are key differences between dealership financing and private sale financing when it comes to obtaining the funds needed to cover the purchase price of your powersport vehicle:
| Dealership Financing | Private Sale Financing | |
| Availability | Offered directly by dealerships | Must be arranged independently with a lender |
| Convenience | Dealer handles paperwork and loan arrangement | Buyer must manage application and paperwork |
| Vehicle Options | Limited to dealer inventory | Wide selection from individuals & online platforms |
| Vehicle Pricing | Often higher due to dealer markups | Typically lower |
| Funding Process | Funds go directly to the dealer | Funds may go to the buyer or seller, depending on the lender |
Where Can You Get Powersport Vehicle Financing In A Private Sale?
Options for private sale financing are more limited than dealership financing. Many banks only provide powersport loans through partnered dealerships, which means they don’t typically finance private sales directly.
However, private lenders are available that specialize in flexible financing solutions. For example, Ride Now, Pay Later, a division of Spring Financial Inc, offers financing for powersport vehicles purchased in private sales. These lenders provide flexible payment terms and are more open to working with borrowers who may not qualify for traditional bank loans.
Where Can You Find Private Sale Powersport Vehicles?
If you’re ready to shop, here are some popular platforms where private sellers list powersport vehicles in Canada:
- Kijiji: This is a very popular Canadian classifieds site with a wide range of ATVs, motorcycles, and boats listed for sale from private sellers.
- Facebook Marketplace: Another popular online platform, Facebook Marketplace is easy to browse local listings and connect directly with sellers.
- AutoTrader: Known for cars, AutoTrader also features powersport vehicles.
- Craigslist: This online classifieds site offers listings in many regions.
- Local Forums & Clubs: Enthusiast groups often post vehicles for sale within their communities.
What Type Of Powersport Vehicle Can You Finance?
Just about any type of powersport vehicle purchased through a private sale can be financed, including the following:
| RVs | Motorized or towable vehicles with living spaces, combining transportation and temporary housing for travel or vacations. | Learn More |
| ATV & UTVs | Popular for off-road recreation and utility work. | Learn More |
| Boats | Smaller recreational boats may qualify for financing, depending on the lender. | Learn More |
| Campers | Towable trailers or smaller vehicles designed with basic sleeping and cooking facilities for camping trips. | Learn More |
| Motorcycles | From cruisers to sport bikes, motorcycles are widely financed | Learn More |
| Dirt Bikes | Lightweight motorcycles built for off-road trails and motocross. | Learn More |
| Jet Skis | Compact watercraft designed for recreation and speed on lakes or oceans, popular for summer sports and leisure activities. | Learn More |
| Snowmobiles | Popular for winter sports and travel in snowy regions. | Learn More |
Requirements For Powersport Financing
Like most other loan types, there are certain requirements you must meet to get approved. Common lender requirements include the following:
- Credit Score: Lenders use your credit score to assess how well you’ve managed debt in the past.
- Proof Of Income & Employment Stability: You must show steady income and job stability to demonstrate your ability to make regular loan payments.
- Debt-To-Income Ratio Limits: Lenders check that your existing debts don’t take up too much of your income, ensuring you can handle a new loan.
- Vehicle Details: Lenders who are financing a private sale powersport vehicle purchase may have restrictions on the vehicle’s age, type, condition, mileage, and title.
| Can You Get A Powersport Vehicle Loan With Bad Credit? Yes, many lenders offer loans to borrowers with bad credit. Because the loan is secured against the vehicle, lenders face less risk. This makes them more willing to approve financing even if your credit history isn’t perfect. However, expect higher interest rates and stricter terms compared to borrowers with good credit. Improving your credit score before applying can help you secure better rates. Learn more: Bad Credit Car Loans In Canada |
Things To Consider When Buying A Powersport Vehicle In A Private Sale
When buying a powersport vehicle privately, keep these important points in mind:
- Finalize The Sale: Complete the transfer of ownership, registration, and insurance in your name after paying the seller.
- VIN Checks & Lien Searches: Make sure the vehicle isn’t stolen or still under financing with the current owner.
- Vehicle History: Request a history report to check for accidents or major repairs.
- Inspection: Have a mechanic inspect the vehicle to confirm its condition.
- Bill Of Sale: Get a signed bill of sale with the purchase price clearly stated.
- Provincial Requirements: Each province has specific rules for registering powersport vehicles.
- Warranty Considerations: Private sales usually don’t include warranties, which means you may be buying “as-is.” In this case, it might be worth exploring warranty packages, depending on the age or condition of the vehicle you’re buying.
Final Thoughts
Financing a powersport vehicle in a private sale is possible, but it requires preparation. Unlike dealerships, private sellers don’t provide financing, so you’ll need to secure your own loan. With the right lender, you can enjoy flexible financing to fund your private powersport vehicle purchase. Just remember to ensure the financing terms fit your budget and are suitable for the transaction you’re looking to make.
