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

In Quebec, securing financing for a private car sale is certainly an option through major banks, credit unions, and some specialized lenders, though the process involves specific requirements to mitigate risk. Lenders will almost always mandate a comprehensive pre-purchase inspection by a certified mechanic to verify the vehicle's mechanical soundness, safety, and fair market value, as this directly underpins the loan's collateral. Equally critical is a thorough lien search conducted via the Registre des droits personnels et réels mobiliers (RDPRM) to confirm the vehicle has a clear title and is free from any outstanding debts or encumbrances, thereby protecting both the buyer and the financial institution. Beyond the vehicle itself, lenders will assess the buyer's creditworthiness and may have restrictions on the vehicle's age or mileage. This rigorous approach is essential because private sales offer fewer consumer protections, such as statutory warranties, compared to purchases from licensed dealers under the Consumer Protection Act. For consumers, understanding these steps is paramount to avoid inheriting unforeseen mechanical issues or legal liabilities. In the current 2025 market, lenders may also apply more stringent approval criteria and potentially higher interest rates, reflecting evolving economic conditions and risk assessments.