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How to check if a car has money owing is an important question when buying a used car in Australia. A car can look great, drive well and still have finance owing against it. How to get that vehicle’s finance detail is actually to find if a security interest is recorded against the vehicle. That mean that money is owing to that vehicle and the car could be at risk of repossession.
Buying a used car is a big decision. Before you hand over your money, it is worth checking the car’s history. Making sure there are no problems that could cost you later. Question is how to find out this finance and how to do it?
Finding how to get car’s money owing
The main way to check if a car has money owing in Australia is to do a PPSR vehicle search.
PPSR stands for Personal Property Securities Register. It is the Australian Government register for security interests in personal property including motor vehicles.
A PPSR search can tell you if there is a security interest recorded against the car. If there is one, it may mean that the vehicle has finance owing.
How to search in PPSR? That requires vehicle’s VIN or chassis number to do the search.
Most cars built after 1989 using a 17-character VIN. You cannot use only the registration plate or engine number for a standard PPSR vehicle search.
How to check if a vehicle is under finance
If you want to know how to check if a vehicle is under finance, start with a PPSR search.
The process is simple:
- Ask the seller for the vehicle’s VIN.
- Check the VIN on the actual vehicle.
- Go to the official PPSR website.
- Enter the VIN or chassis number.
- Pay for the search.
- Read the search result and certificate.
The Australian Government currently charges $2 for an online PPSR vehicle search. The search certificate is provided after the search. You are read how to read PPSR certificate.
Always enter the VIN carefully. PPSR search fees are non-refundable, so check the number before you submit the search. Know more how to read VIN code.
How to check if a vehicle has finance owing
When people ask how to check if a vehicle has finance owing, they are usually asking whether a lender has an interest in the car.
A PPSR search can show a security interest recorded against the vehicle.
For example, a person may have purchased a car using a secured car loan. The finance company can register an interest in the vehicle on the PPSR.
If the loan has not been dealt with and the security interest remains registered, the vehicle may be at risk of repossession.
This is why it is important to check the PPSR before buying a used car privately.
What does it mean by? money owing on a car?
Money owing usually means there is a debt or finance arrangement connected to the vehicle.
For example, imagine someone buys a $30,000 car using finance. The finance company may have a security interest over that car.
A scenario could be, the owner decides to sell the car before paying the loan off.
If you buy the car without checking the PPSR, you may not know about the car’s previous financing arrangements.
The Australian Government gives an example of a buyer who bought a used car privately. Later found that a finance company wanted to repossess it because the previous owner had not paid the secured loan.
That is why a PPSR search should be part of your used-car buying process.
Does a PPSR check tell you how much money is owing?
No.
This is an important point.
A PPSR search can show whether a security interest is recorded against the vehicle, but it does not show the exact amount of finance owing. It also does not provide the owner’s name, ownership history, odometer reading or outstanding fines.
If the PPSR shows a security interest, speak to the seller and the finance company listed on the search before buying the car.
Do not simply rely on the seller saying that the loan has been paid.
The finance company should confirm that the security interest has been dealt with or removed.
Can you check if a car has finance owing for free?
The official Australian Government PPSR vehicle search currently costs $2 online.
Some other vehicle websites may offer free information, but a free registration or vehicle lookup is not the same as a PPSR search.
If your main concern is how to check if a car has money owing, the PPSR is the key check to do.
For $2, you can get an official PPSR search certificate showing the result at the time of the search. Read how read PPSR certificate.
When should you check for finance owing?
Do the PPSR search as close as possible to the time you buy the car.
The Australian Government recommends doing the PPSR search on the day you buy the car or the day before. This gives you more up-to-date information and can provide stronger protection if there is later a claim over the vehicle.
You can also check the car when you first find it and then run another PPSR search before you pay.
This is especially useful if you have been talking to the seller for several days.
What if the PPSR shows finance owing?
Do not ignore it.
If the PPSR shows a security interest, ask the seller for details. See how to read PPSR search outcome.
You should find out:
- Which finance company has the interest
- Whether the loan has been paid
- Whether the security interest is still active
- How the finance company will release its interest
- Whether the finance company can provide confirmation
The Australian Government advises buyers to contact the financier shown on the PPSR report when a security interest is recorded.
If the seller says the loan has already been paid, it is still important to make sure the PPSR registration is properly dealt with.
What else should you check on a used car?
Checking for money owing is only one part of buying a used car.
You should also check whether the car has been:
- Reported stolen
- Written off
- Damaged in a serious accident
- Affected by other known issues
- Correctly registered
- Properly serviced
A PPSR vehicle search can include available information about the vehicle. This shows vehicle’s written-off and stolen status as well as basic vehicle details. That includes vehicle’s make, model, colour, etc. However, to know more about the vehicle, you should also arrange an independent mechanical inspection.
In fact, a PPSR check does not tell you whether the engine, gearbox, brakes, tyres or other mechanical parts are in good condition.
Check the VIN before buying
The VIN is one of the most important numbers to check when buying a used vehicle.
Most modern vehicles have a 17-character VIN. You can usually find it on the vehicle, under the bonnet, near the windscreen or around the driver’s door area. It may also appear on registration paperwork.
Always make sure the VIN on the car matches the VIN on your PPSR report. If the numbers do not match, stop and investigate before buying. Know how to read VIN.
Check the VIN before buying
The VIN is one of the most important numbers to check when buying a used vehicle.
Most modern vehicles have a 17-character VIN. You can usually find it on the vehicle, under the bonnet, near the windscreen or around the driver’s door area. It may also appear on registration paperwork.
Always make sure the VIN on the car matches the VIN on your PPSR report.
If the numbers do not match, stop and investigate before buying.
Is a car with finance owing safe to buy?
A car with a registered security interest needs extra care. It does not automatically mean the seller is trying to trick you.
The seller may not understand the finance situation. They may have bought the vehicle themselves without knowing about the registered interest.
However, you should not simply pay the seller and hope the problem is sorted later. Make sure the finance is properly dealt with before completing the buy.
What about buying from a dealer?
The rules can be different when buying from a licensed motor vehicle dealer. The Australian Government says buyers are generally protected from repossession when buying from a licensed dealer, even if a security interest was registered against the car.
Even so, doing your own PPSR check can still give you useful information about the vehicle.
If you are buying privately, a PPSR search is particularly important.
Summary
In summary, knowing how to check if a car has money owing can help you avoid a serious problem when buying a used vehicle in Australia.
The simplest way is to use the Australian Government’s PPSR vehicle search with the car’s VIN or chassis number. A current online search costs $2 and can show whether a security interest is recorded against the vehicle.
If you want to know how to check if a vehicle is under finance, remember that a PPSR search is the key first step. If a security interest appears, investigate it before paying the seller.
A few dollars and a few minutes can be well worth it when you are spending thousands on a used car.
Useful Australian Resources
- Australian Government PPSR – Used Car Search – Check a vehicle for security interests, stolen status and written-off information.
- Australian Government PPSR – Buying a Used Car – Government advice on checking a vehicle before buy.