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How Important is a PPSR check when buying a car?

How Important is a PPSR check when buying a car?

January 22, 2018

Had a client approach me yesterday saying how he saved up enough money to buy a 4WD he's always wanted.

" Congratulation's" i said.

I'm always pleased when my clients show persistence and discipline when it comes to saving money to achieve what they've always wanted in lieu of reverting to credit (something i'm sure my peers don't like hearing!).

"When are we going camping?" i asked my client.

"I bought it privately so once i get it checked by RAA." my client said.

I responded in surprise, "what do you mean when you get it checked, you didn't get it checked before buying it?"

Nervous while waiting for the response he said "nah, i was so excited it had low km's i just bought it with cash."

Cash, cash, cash..... it used to be king when my parents immigrated to Australia.

" You give me discount if i pay cash?" was the first thing that used to come out of my dads mouth at the start of any negotiation when buying anything, even his first car!

The dynamics have changed, cash is no longer king but just a pawn in todays inevitable cashless society.

The writing was on the wall and i could see where this conversation was going.

"So did you have a PPSR check ordered against it?" i asked.

He looked at me like i was speaking another language and asking him for his left lung " Wtf is that?"

"PPSR check is a personal properties security register which lists details of the vehicle such as whether its stolen, been written off and recovered or if it has finance owing on it." i explained.

" How can he sell a stolen car, wouldn't the cops know?"

I briefly explained some scenarios over coffee and offered to submit a PPSR check on his vehicle for peace of mind.

When i got back to the office i submitted the PPSR check and felt ill reading the report that was generated and sent back to me.

The car had finance owing on it from the previous owner but registered in my clients name. I had broken the news to my client who then asked me for advice on what to do next, obviously the first step is to speak to the seller and ascertain their intentions with the finance owing on the vehicle.

The risks involved with such a scenario is the seller not finalising the finance they have owing on the vehicle.

As a result the financier can repossess the vehicle to recuperate the monies owed, leaving the new buyer without a car and their hard earned savings if the repayments aren't made to the financier.

This scenario is predominate to private sales however dealers are not immune to it.

How can you avoid this?

Have a trusted adviser conduct a PPSR check before buying any type of asset including vehicles, trucks and anything else that can be registered. Most asset finance broker's have the ability to check whether or not the vehicle you want to buy has any encumbrances on it such as it being stolen or finance owing etc.

Stay tuned for the result or message me to find out the conclusion!