Why PPSR Checks Are a Must to Avoid Encumbered Vehicles
- Alex Jevan
- May 27
- 4 min read
Buying a used car is a smart way to save money. But sometimes, things can go wrong — especially if the car has finance owing. This is called an encumbrance. If you don’t check, you could lose the car or have to pay extra money!
That’s why it’s important to do a PPSR check before you buy. In this blog, we’ll explain what a PPSR check is, why it matters, and how it helps you stay safe when buying a used car in Australia.
What Is an Encumbered Vehicle?
An encumbered vehicle is a car that still has a loan on it. That means the person selling the car hasn’t finished paying off their loan.
If you buy a car that still has money owing, the finance company can take the car back — even though you paid for it!
That’s why PPSR checks are so important. You can read more here:👉 Buying a Used Car? Watch Out for Hidden Encumbrances
What Is a PPSR Check?
PPSR stands for Personal Property Securities Register. It is a government database that keeps track of cars, boats, and other items that have loans or other financial ties.
A PPSR check tells you:
✅ If the car has finance owing (encumbrance)✅ If the car has been written off✅ If the car has been stolen
This helps you make a smart, safe choice before buying any used car.
Why Is a PPSR Check So Important?
Here are 5 big reasons why you must do a PPSR check before buying a used car:
1. To Avoid Buying a Car with Finance Owing
If a car still has money owing, it belongs partly to the finance company. If the loan is not paid, the company can take the car, even after you buy it.
You might lose your money and your car. A PPSR check shows you if there’s any money owing, so you can avoid this.
2. To Make Sure the Car Is Not Stolen
Some people try to sell stolen cars. They might change the plates or use fake papers.
A PPSR check uses the car’s VIN (Vehicle Identification Number) to see if the car is reported stolen in Australia. If it is, you’ll know straight away.
3. To Know If the Car Was Written Off
A car that was badly damaged in a crash and marked “written off” may not be safe to drive — even if it looks fine on the outside.
A PPSR check tells you if the car was in a big crash or written off by an insurance company.
4. To Protect Your Money
Used cars cost thousands of dollars. That’s a lot of money to lose! Spending just a few dollars on a PPSR check is a smart way to protect yourself.
One small check could save you thousands.
Want to learn more? Visit:👉 The Risks of Buying a Car with Finance Owing in Australia
5. To Buy with Confidence
When you have a clean PPSR report, you can feel good knowing the car is safe, legal, and loan-free. It makes the whole process easier and less stressful.
You don’t need to guess or trust a stranger. You have proof.
How to Do a PPSR Check in Australia
Doing a PPSR check is simple. Just follow these steps:
Step 1: Get the VIN
The VIN (Vehicle Identification Number) is a 17-digit number that is unique to each car. You can find it:
On the car’s dashboard near the windscreen
Inside the driver’s door
On the registration papers
Make sure the VIN on the car matches the papers!
Step 2: Go to a Trusted Website
Here are 3 trusted Aussie sites for PPSR checks:
They are fast and easy to use. Just enter the VIN and pay a small fee.
Step 3: Read the Report Carefully
The PPSR report will tell you:
✔ No money owing? You’re safe to buy!
❌ Finance owing? Be careful — ask the seller to pay it off first.
❌ Stolen or written off? Walk away and look for another car.
What to Do If There Is an Encumbrance
If the PPSR report shows finance owing, here’s what to do:
🛑 Don’t buy the car yet.
💬 Ask the seller to pay the loan first.
📄 Get proof — ask for a “loan payout letter.”
🔁 Do another PPSR check to make sure the loan is gone.
If the seller refuses, it’s best to walk away. It’s not worth the risk.
Common Mistakes to Avoid
🚫 Not checking the VIN properly
🚫 Believing the seller without proof
🚫 Skipping the PPSR check to save money
🚫 Rushing the sale because the price is “too good”
Want to avoid more mistakes? Here’s a helpful read:👉 5 Mistakes That Could Lead You to Buy a Stolen Vehicle
Final Tips Before You Buy a Used Car
✅ Always ask for the VIN
✅ Do a PPSR check
✅ Read the report
✅ Don’t buy if there’s finance owing
✅ Use trusted sites like Vin Check and Revs Check
Buying a used car can be safe — if you take the right steps.
Final Words
A used car can be a great deal — but only if it’s safe, legal, and free from any money owing. A PPSR check is your best tool to stay safe.
It only takes a few minutes and costs less than a tank of fuel. But it could save you from losing thousands of dollars and lots of stress.
So before you buy, check the PPSR. Drive happy. Drive smart. 🚗
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