How to check if a used car has money owing in Australia
What money owing on a car means, why it matters more on a private sale than a dealer one, how to check before you pay, and what to do if a lender shows up.
A lot of cars in Australia are bought on finance, and a lender usually registers its interest in the car until the loan is paid off. If the owner sells the car before that, the loan stays theirs, but the lender's right to take the car stays with the car, even after it is sold to you.
Why it matters on a private sale
If you buy privately and there is a lender registered against the car, the car can be repossessed from you even though you have paid for it in full. Your only way to get your money back is then to chase the seller. The ute or the family SUV you just bought is the lender's security, not yours.
This is most common on the cars that are most often financed: newer utes and 4WDs like the Toyota Hilux, Ford Ranger and Toyota LandCruiser, and late-model SUVs.
Buying from a dealer is different
If you buy from a licensed dealer, you are generally protected from repossession even if a lender had an interest registered against the car. Clearing the finance is the dealer's problem. That protection does not apply to private sales, which is why the check matters most there.
How to check
- 1.Get the plate and state from the seller, and the VIN from the car itself. Check the VIN on the car matches the rego papers.
- 2.Run a money owing check on it. The KickTyres Vehicle Check shows whether there is money owing and names the lender, along with write-off, stolen and rego status.
- 3.Check again on the day you pay, if days have passed since the first check. A seller can take out finance against a car after you first looked at it.
If the check shows money owing
It doesn't have to kill the sale, but don't pay the seller and hope. The usual safe ways through are:
- The seller pays the loan off first, and the lender removes its registration against the car. A paid-off statement on its own is not enough. Check again before you pay.
- You pay the lender directly the amount owing, with the lender's written payout figure, and pay the seller only the balance. The seller will need to authorise the lender to deal with you. Get the lender to confirm in writing that its registration will be removed, and check again afterwards.
- You walk away. If the seller is vague, will not give you the lender's details, or wants cash quickly, that is the right answer.
Never hand over the full price to a seller on the promise that they will pay the loan off afterwards.
What else to check while you are at it
Money owing is one of four records worth checking on every used car, with written-off history, stolen status and rego. The car history check guide covers all of them, and stolen or written off covers the two that need a closer look.
A KickTyres Vehicle Check reads the official records for one Australian plate: money owing (with the lender named), written-off history, stolen status and registration status, alongside the documented faults for that model and engine. A$17.90, or A$28.90 with the guided inspection.
Check for money owing before you pay
Enter the plate and state. The Vehicle Check shows money owing (with the lender named), written-off history, stolen status and registration status, plus the documented faults for that exact model. A$17.90.
Check the model before you view
Every documented fault for these models, with the years and engines each one applies to.
Frequently asked questions
How do I check if a car has finance owing in Australia?
Run a check on the plate and state, or the VIN, before you pay. The KickTyres Vehicle Check shows whether there is money owing on the car and names the lender, plus write-off, stolen and rego status, for A$17.90.
What happens if I buy a car with money owing on it?
If you bought privately, the lender may be able to repossess the car from you even though you paid for it, and you would have to chase the seller for your money. Buyers from licensed dealers are generally protected.
Can I still buy a car that has money owing?
Yes, if the loan is cleared before or as part of the sale: the seller pays it off and shows written confirmation, or you pay the lender's payout figure directly and the seller the balance. Check again before you pay.
Is a PPSR check the same as a money owing check?
Yes. PPSR is the national register where lenders record their interest in a car, so a money owing check reads it. The KickTyres Vehicle Check includes it.