In NB, what should I know about private sale financing for car loans?

In New Brunswick, securing financing for a private car sale is certainly possible through major Canadian banks and credit unions, though the process entails specific requirements designed to mitigate risk for both the lender and the buyer. Lenders will almost invariably mandate a comprehensive mechanical inspection by a certified mechanic to ascertain the vehicle's true condition and market value, protecting against unforeseen issues and ensuring the asset's integrity. Equally critical is a thorough lien search, typically conducted through the NB Personal Property Registry or a reputable national service like Carfax/CarProof, to confirm the vehicle is free of any outstanding debts or encumbrances that could legally transfer to the new owner. This due diligence is paramount for consumer protection. Furthermore, buyers must factor in the provincial HST, which is payable on the purchase price when registering the vehicle with Service New Brunswick, even for private transactions. Given current (and projected 2025) market conditions, financing terms for private sales might reflect a higher perceived risk compared to new car financing, potentially leading to stricter eligibility criteria or slightly higher interest rates. Understanding these steps and requirements upfront is crucial for consumers to protect their investment, ensure a clear title, and navigate the private sale process smoothly and confidently.