Private sale van finance: buying from a private seller or at auction
Yes. A business can get van finance when it buys from a private seller or at auction. It needs a few more checks than a dealer sale. So set up your finance before you pay or bid.
Our team are finance brokers in Scotland, working across the whole UK. Buying from a dealer instead? Read our van finance guide.
Can my business get finance on a van from a private seller?
Yes, your business can get finance on a van from a private seller. A private seller is anyone who is not a dealer or an auction house. It might be a person, or another business selling its van.
A private sale takes longer, so the same day is unlikely. The seller must prove the van is theirs.
Who checks the van?
The lender decides how the van is checked. It may look at the van itself, in person or by video call. It may ask our team to check it and send pictures. Or it may ask you or the seller to use an app.
What if there is still finance on the van?
If finance is still owed on the van, it must be paid off first. The lender checks this for you. The seller can show a letter saying the old finance is paid. Or your lender pays it off, then pays the seller the rest.
Can I buy a van at auction on finance?
Yes, you can buy a van at auction on finance. Set up your van auction finance the week before the auction. Tell us which van you plan to bid on. The lender then says the most it will lend. If the bidding goes higher, you pay the difference.
If you pay first, the lender can pay you back. That is called sale and hire purchase back. Read how a Highland firm bought a minibus at auction on finance.
What happens when I win at auction?
When you win, tell us straight away.
| Step | What happens |
|---|---|
| 1. The hammer goes down | You tell us which van you won, and the price. |
| 2. The invoice | We ask the auction house to make the invoice out to the lender. |
| 3. Signing | You sign the finance documents, often online. |
| 4. Paying | The lender pays the auction house. |
| 5. Collecting | You collect the van, or have it brought to you. |
We cannot promise the day the lender pays. So do as much of what the lender asks as you can before the auction. Neither the lender nor our team pays storage charges.
What if I am the private seller?
Yes, you can sell your van to a business using finance. Ask the buyer if their finance is in place, and what the lender needs from you. Our guide to selling a van to a buyer using finance shows the rest.
Who can get private sale van finance?
Limited companies and limited liability partnerships can get it, usually from £15,000. Sole traders and partnerships can, usually for over £25,000. Most of our work is hire purchase, so the van is yours at the end.
A real example of a hire purchase agreement completed by Mackenzie Commercial Finance
Completed by Martin Mackenzie, September 2026.
These are real figures from a real agreement we completed for a customer. The customer was a limited company buying a used asset from a dealer.
- Price
- £43,998 including VAT
- Deposit
- £8,799.60 (20%)
- How many months
- 60
- Monthly payment
- £714.38
- Documentation fee
- £280
- Option to purchase fee
- £80 + VAT
- Total cost of finance
- £8,024.40
- Total amount paid
- £52,022.40 (+ VAT on the £80 fee)
This was business finance for a company. It was not regulated consumer finance. Every case is different. This is not a quote.
Frequently asked questions
Will I get VAT back on a van from a private seller?
Not from a person, because a person is not VAT registered. A business selling its van often charges VAT, just like a dealer.
What if a lender will not fund the van?
A business loan can pay for the van. Or, if you can pay for it yourself, buy it first and raise the money back on it after. That is called refinance.
What if I win at auction without finance in place?
Tell us straight away. Fewer lenders can act that fast, and you may pay storage charges or lose the van.
Is there an age limit on a used van?
It varies by lender. Many want the van to be 12 to 15 years old at most when the agreement ends.
How does a private seller get paid?
The lender pays the seller direct, once its checks are done and it has a correct invoice.
Is there a mileage limit on a used van?
Most agreements with no balloon (a bigger last payment) have no mileage limit. Some lenders set a top mileage, like 100,000 miles. With a high mileage van, look closely at its condition and its service history.
This guide shares what we have seen as finance brokers. It is general information, not financial advice. Every business is different, so base any decision on your own case.
