Before you make the decision to do this, you must find out weather the supplier is registered for GST. If he is not, you will effectively be paying 10% more than you realise, as you will not be able to claim back any GST from the ATO.
Once you are happy you will pay a reduced price or the supplier is GST registered, we can now look at what additional requirements will be required. As with any finance application we will need to meet the proposed lenders finance approval requirements. However the financier is going to want more.
Read below to find out what the financier might need.
Verifying Description of Goods.
- The goods will need to have a serial number or like for physical identification
- The goods will need to be inspected by us or an authorised inspection authority
- The goods will need their value verified. (The financier may charge a fee for this)
Verifying the Current Owner of the Goods
- A PPSR check is done to ensure the goods are not stolen, have been written off by an insurer or a finance agreement is current on the goods.
- The seller is required to prove they are the owner of the goods. (Purchase Invoice and proof of payment)
- The seller must produce identification and banking details for loan funds to be deposited to. (They will only deposit funds to the bank account of the verified owner)
- Some financiers will not finance a Private Sale. Other have age restrictions. Please talk to us to find out more.
If you want to know more about purchasing from a Private Seller call us on 1300 583 022 or fill out the contact form for a Free Confidential Consultation.