What is a PPSR check, and do you need one?

What the PPSR is

The Personal Property Securities Register is the national register of security interests in personal property, run by the Australian Government. When someone borrows money against a car, the lender usually registers its interest there, against the car's VIN. That registration stays until the loan is paid out and the lender removes it.

A PPSR check searches that register for one vehicle. It is national, so it covers a car registered in any state or territory.

What a PPSR check tells you

• Money owing: whether a lender has a registered interest in the car, such as car finance.
• Written-off records: whether the car has been recorded as a write-off.
• Stolen records: whether the car has been reported stolen.
• The official search certificate, with the date and time of the search.

What it does not tell you

• How much is owed on the car.
• The car's accident, service or ownership history.
• The car's condition. An inspection by a mechanic is still worth doing.
• Anything that happens after the search. Run it close to when you pay.

When to get one

Get a PPSR check whenever you buy a used car privately, before you hand over any money. If a lender's interest is registered and you buy the car anyway, the lender may be able to repossess it from you, even though you paid the seller.

Buying from a licensed dealer generally gives you more protection, but a check is still cheap peace of mind, and it confirms the VIN on the car matches the paperwork.

What to do if it finds money owing

1. Do not pay yet.
2. Ask the seller to pay out the loan and have the lender remove its registration, or to show you a payout letter from the lender.
3. Run a new check once the seller says it is cleared, and only then pay.
4. If the seller will not sort it out, walk away.