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

In Ontario, securing financing for a private car sale is indeed possible through major banks and credit unions, though it entails a more rigorous process than dealer financing. Lenders prioritize mitigating their risk, so they will typically require a comprehensive pre-purchase inspection (PPI) by a certified mechanic to ensure the vehicle's mechanical soundness and market value. Crucially, a thorough lien check through the Personal Property Security Act (PPSA) registry is mandatory to confirm the vehicle is free of any outstanding debts, protecting both the buyer and the lender from inheriting financial liabilities. The buyer's creditworthiness and the vehicle's assessed market value will also be key factors in the approval process. For consumers, this means taking on greater responsibility for due diligence, including obtaining the mandatory Used Vehicle Information Package (UVIP) which details the vehicle's history and any existing liens, and ensuring the vehicle can pass a safety inspection for registration. While private sales can offer cost savings, these added steps and the potential for slightly higher interest rates due to perceived higher risk, especially in a potentially tighter credit market like 2025, underscore the importance of understanding these requirements to ensure a secure and successful transaction.