How to Check if Finance is Owing on a Car?
Wednesday, 17 May 2023
If you’re considering buying a used car, it’s important to know whether the car has any outstanding finance on it. Buying a car with outstanding finance can lead to inheriting the debt. This could even result in repossession of the vehicle, even though it was sold to you. So how do you check if finance is owing on a car?
One of the easiest ways is to obtain a Vehicle History Report. This report will provide you with a detailed history of the vehicle, including any finance that is still outstanding.
How to check Consumer Information Notice
If you are interested in purchasing a car from a dealership, it is advisable to review the Consumer Information Notice (CIN) that is displayed on the vehicle. Dealerships must attach a CIN to each vehicle they offer for sale. And if there are any ongoing financial commitments to a financing organization, the CIN must include a statement indicating that “a security interest has been registered against this motor vehicle.
How to check the Personal Property Securities Register
Another way to check if finance is owing on a car is to conduct a Personal Property Securities Register (PPSR) search. The PPSR is a national online register that allows you to search for any security interests that may exist over personal property, including vehicles. A PPSR search will reveal any outstanding finance or other security interests on the vehicle.
To conduct a PPSR search, you will need to provide the vehicle’s registration number or VIN (Vehicle Identification Number) and pay a fee. The fee varies depending on the type of search you require, but it’s a small price to pay for the peace of mind of knowing whether or not a car has finance owing on it.
It’s important to note that even if a car has finance owing on it, it may still be possible to buy the car. You can negotiate with the seller to pay off the outstanding finance before you take ownership of the vehicle. Alternatively, you can take over the finance payments yourself if you’re happy with the terms of the loan.
Why do you need to check if finance is owing on a car?
Buying a car with existing finance can lead to debt. This could result in repossession of the car. This can be a costly and stressful experience, so it’s important to know whether a car has finance owing before you make a purchase.
Checking if finance is owing on a car is particularly important if you’re buying a car from a private seller. Private sellers are not obligated to declare any outstanding finance on the vehicle, so you must perform your own due diligence.
If you’re buying a car from a dealer, they are required by law to disclose any outstanding finance on the vehicle. However, it’s still a good idea to conduct your own checks to ensure that the information provided by the dealer is accurate.
Checking if finance is owing on a car can also help you to negotiate a better price. If a car has finance owing, it may be worth less than a similar car that is free of any outstanding debt. You can use this information to negotiate a lower price with the seller.