How to do a PPSR check before you buy a used car

Imagine paying for a car, driving it home, and later learning that the seller’s lender still has a claim on it. That’s the problem the Personal Property Securities Register exists to prevent. For two dollars and a few minutes, you can find out whether a used car comes with someone else’s debt attached. This guide shows exactly how.

What is the PPSR, and why does it matter for cars?

The Personal Property Securities Register is a national, government-run register of security interests in personal property, including cars. When a lender finances a car and takes it as security, it registers that interest on the PPSR against the car’s serial number. The registration stays until the loan is repaid.

For a buyer, that means a search can reveal whether a car is still tied to a loan. The PPSR’s own guidance says the search shows whether the car is:

• debt free, or still has finance owing;
• reported as written off; and
• reported as stolen.

If you buy a car with finance owing and the debt isn’t cleared, the lender may be able to take the car. The search is your protection.

How do you find the car’s VIN?

You need the car’s VIN (vehicle identification number) or chassis number. The PPSR is specific: number plates and engine numbers can’t be used.

Most cars built after 1989 have a 17-character VIN on a metal plate. Common places to look:

• the compliance or build plate in the engine bay;
• the base of the windscreen on the driver’s side;
• the driver’s door pillar; and
• the registration papers.

Check the VIN in at least two places and make sure they match each other and the paperwork. Moneysmart includes “confirm the VIN matches the paperwork” in its used car checks. A mismatch is a reason to walk away.

How do you run the search, step by step?

1. Get the VIN from the seller before you inspect, so you can search first and avoid wasting a trip.
2. Go to the official PPSR website at ppsr.gov.au and choose the car search. Be wary of look-alike sites charging more.
3. Enter the VIN carefully. One wrong character gives you a result for a different car or no result at all.
4. Pay the $2 fee.
5. Read the result on screen. It appears straight away.
6. Keep the certificate. A copy of the official search certificate is emailed to you. Save it with your purchase documents.

How do you read the result?

The result answers three questions:

Question	Good answer	What to do if not
Is there a registered security interest?	No interest registered	Don’t pay until it’s cleared; ask for a payout letter from the seller’s lender
Has the car been reported stolen?	No	Walk away and consider reporting it
Has the car been reported as written off?	No	Find out what kind of write-off and whether it can legally be re-registered; get expert advice before going further

The certificate is a record of what the register showed at the time of your search, which is why timing matters.

When should you search, and why twice?

The PPSR recommends searching when you find the car and again on the day you buy. The first search tells you whether to bother inspecting. The second catches anything registered in between: a seller could take out a loan against the car after your first search.

If you’re financing the purchase, your lender will usually run its own search too. Run yours anyway. It’s two dollars, and it’s your record.

What if the search shows finance owing?

It isn’t automatically a deal-breaker. Plenty of honest sellers still have a loan on their car. What matters is that the loan is paid out as part of the sale. Moneysmart’s advice is to make sure any existing loan is cleared before you pay.

Ways to handle it:

• Ask the seller for a payout letter from their lender showing the amount owing and how to pay it.
• Pay that amount directly to the seller’s lender, and the balance to the seller.
• If you’re getting a loan yourself, your lender can often arrange this as part of settlement.
• Get written confirmation that the security interest has been removed.

What you should never do is pay the seller in full on a promise that they’ll clear the loan later.

What else should you check besides the PPSR?

The PPSR is one piece. A thorough used car check also includes:

• a state registration check, which in NSW shows rego status and expiry, the CTP insurer and past odometer readings;
• a vehicle history report (paid), which in NSW can show stolen and written-off history, number of owners and first registration date;
• an independent inspection by a qualified mechanic, which Moneysmart calls the safest option;
• the service history and logbook; and
• a test drive on varied roads.

Our used car loans page lists the checks in a table, and private sale car loans explains how lenders handle payment when the seller is an individual.

How does the PPSR affect your own loan later?

If you finance the car with a secured car loan, your lender will register its interest on the PPSR. Anyone who searches your car’s VIN will see it until you’ve repaid the loan. That’s normal. It’s also why, if you sell the car before the loan ends, the payout usually happens as part of the sale. Our page on secured vs unsecured loans explains the difference this makes.

Which scams does the PPSR help you avoid?

A clear PPSR result protects against hidden finance, but scammers have other tricks. Moneysmart’s warning is simple: never send money before seeing the car. Be wary of sellers who:

• won’t give you the VIN before you inspect;
• want a deposit to “hold” a car you haven’t seen;
• can’t meet at an address that matches their ID; or
• push you to decide immediately at a price well below market.

What does a clean purchase day look like?

Putting it all together, an illustrative purchase day for a private sale might run like this:

1. Morning: run the second PPSR search and check the result matches your first one.
2. At the seller’s home: check the VIN on the car against the registration papers and the certificate, and confirm the seller’s ID matches the registered owner.
3. Payment: if finance was owing, the payout goes to the seller’s lender first, with the balance to the seller. If you’re borrowing, your lender handles this as part of settlement.
4. Paperwork: get a signed receipt with the date, price, VIN and both names.
5. Same week: transfer the registration into your name within your state’s deadline, which is 14 days in NSW.

If you haven’t sorted the money side yet, do it before purchase day so you’re not rushing. You can see your loan options before you commit and have them ready when the right car turns up.

Clear search, clear budget, clear road

Once the PPSR is clear and the car has passed inspection, the last piece is the money. Check your comfortable repayment in the car budget planner, including running costs, and when you’re ready, start an application with our secure partner. You can see your options before you commit, and a real person can help coordinate payment if the seller still has finance to clear. Please enter the car’s details and your finances accurately, so everything lines up on purchase day.

See my used car loan options →