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

In Nova Scotia, securing financing for a private car sale through banks or credit unions is certainly possible, though it involves a more rigorous process compared to dealership financing. Lenders will typically require a comprehensive mechanical inspection by a certified mechanic to assess the vehicle's condition and value, mitigating their risk. Crucially, a Personal Property Registry (PPR) or PPSA lien search is mandatory to ensure the vehicle is free of any outstanding debts or encumbrances that could transfer to the new owner, a standard Canadian practice. Additionally, the lender will likely conduct their own valuation of the vehicle, often using resources like the Canadian Black Book, to ensure the loan amount aligns with the car's market value. From the buyer's perspective, standard credit approval criteria will apply. It's vital to remember that in NS, you will be responsible for paying HST on the purchase price when registering the vehicle, even for private sales. This detailed due diligence protects both the lender's investment and the buyer from potential financial liabilities or purchasing a vehicle with undisclosed issues, which is particularly important in a 2025 market where lenders are often more cautious with private sale financing due to perceived higher risk and lack of dealer-backed warranties.