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3 Steps To Buying Car With Finance Owing

Are you buying a car with finance owing but not sure what to do? Do these 3 steps so you can get ‘clear title’ and protect yourself when buying privately.

You see when buying a used car from a private seller you might not get the whole truth about who actually owns the car.

Watch This Video Below To See What Happens If You Take Possession Of A Vehicle That Still Has Finance Owing On It.

Step 1

Check The Vehicle Finance Status Online

As shown in the video the car got repossessed because there was finance owing. This is why you need to do a vehicle finance check so you can obtain the official Personal Property Securities Register (PPSR) report to see if there are any financial security interests attached to the vehicle.

To make sure the vehicle you intend to buy is not being used as security for a loan. Make sure you get the vehicle identification number (VIN) from the body of the car or most 4WD vehicles will have it on the chassis. This is very important because you don’t want to buy a cloned vehicle. The number will be etched into the body or chassis.

Step 2

Get The Payout Figure Amount (Finance Owing)

By asking the owner to provide you with the payout figure from the finance company that has the security interest on the vehicle.

  • This must be done in writing, recently dated and done on the finance company’s letterhead.
  • If the seller is honest you should not have a problem obtaining this important information. But if you can’t get this information or clear answers to your questions better to walk away and find another car with an honest seller.
  • Then match the finance company details to the secured party details on the PPSR report you got in step 1.
  • Next call the organisation that holds the security interest and ask them about their procedures to lifting their interest from the title of the vehicle. You are not asking the finance company to give you specific personal details because they won’t because of privacy laws, you just want to know their payment options to lift the encumbrance (security interest) to get clear title or free from debt.

Step 3

Payment Options To Get Clear Title When Buying A Car With Finance Owing

Going to the bank with the seller to pay off the car and obtain the title is considered the safest and most convenient. otherwise, you will need a bank cheque. You may be able to pay by BPAY.


When buying a used car you should only deal with the facts & not assume or believe what the seller is telling you. Remember it is not about trust, it’s about making a good business decision or in this case a good buying decision. If you get it wrong you could be out of pocket hundreds even thousands of dollars. This is why I recommend you download my free Street Smart Tool Kit. You will know what to look for and receipt forms to help you record important information. Go to Buying Your First Car – 9 Important Steps to learn more.

Also Please Note:
The information contained on this page is for general information purposes only.
All reasonable steps have been taken to ensure that this information is accurate, complete and up-to-date. Also If you believe that any information we have displayed is inaccurate, please contact us immediately and we will take all reasonable steps to correct it. Finally, this information is a guide only and cannot be used as a reference to a point of law.