How to do a Car Finance Check?
The easiest way to do a car finance check is to get a PPSR report. It will show if there is any car loan attached to the vehicle. Although you may ask the current owner if there is any finance on the car, it is always safer to conducting a car history check and get a PPSR certificate to confirm. You may use CARIFY REVs check service or other online services to do a car finance check. To order a report from CARIFY, all you need are:
- VIN or REGO number
- A valid credit/ debit card
- An email address
Why do I need a Car Finance Check?
In Australia, buying a second-hand car is common. However, many of these vehicles could potentially have car finance attached. This means that the person you are buying the car from, may not actually completely own the vehicle. Without a car finance check, you may become liable for the debt or lose your new car. It is not anything unusual and purchasing a car that has finance owing is not difficult. But it is something you will want to resolve before finalising the sale.
Potential Risks of Purchasing a Vehicle with Car Finance Attached
A vehicle with car loans may not be a deal breaker, but you need to be careful on how you proceed. Knowing the value of the vehicle and the amount of the car finance are key while considering an encumbered car.
Do not rely on the seller paying off the car finance after they received your payment. You should write or prepared two separate cheques; one for the seller and the other made out to the financier. Make the exchange in the offices of the financier to ensures that the car loan is paid out, and the vehicle is free from its debt obligations.
If it is not something you want to deal with, make sure to do a car finance check before purchasing your desired car.