Buying A Financed Car Safely
This question is being asked more and more frequently. Are there any dangers in buying a car that has been financed? Nobody asks the same question when buying a property which has a mortgage on it, because it is very normal for banks to pay other banks the loan owed on a property and close the deal.
It is quite obvious that most of the used car purchases take place privately for obvious benefits. It is not something new. There is absolutely no problem in buying a car that has been financed. The only thing is that you should do a little homework before you finalize the purchase. You can order a REVS check in Western Australia when purchasing a car. We will come to that later. Let us see how car finance works.
When a loan is paid for buying a car, financiers use the car as the collateral. Which means that the loan is on the car and not the borrower. Of course, the borrower is responsible for paying off the loan.
This where private buying faces problem. When a financed car is sold by dealers or auction houses, they are bound by law to declare if there is any unpaid debt on the car. If they hide the fact they face severe penalty for this. But for a private seller there is no such law which mandates him to disclose if there is any unpaid debt against the car.
This means that if you buy a car with unpaid debt on it, the car can be taken away by the financier because the loan is on the car. The situation is that either you have to pay the amount owed on the car or lose the car, neither of which is a good situation. So, how do we avoid this situation?
Doing a REVS check WA is the best way to find out if there is a security interest on the car. A security interest means unpaid debt. The REVS is no obsolete and, in its place,, there is an even better solution. The PPSR is a very convenient and economical way to find if the finance on the car has been paid or still some part of it is yet to be paid.
PPSR stands for Personal Property Securities Register which is an online register where you can check the vehicle that you intend to buy. It is a register where loans given on any property including vehicles are maintained. You can use the VIN number, Chassis Number or Manufacturer’s number to check whether there is any loan pending on your vehicle. If there is any unpaid loan on the car it will be mentioned there.
In addition to that information the PPSR also provides information about stolen and written off vehicles. These details are added from the National Exchange of Vehicle and Driver Information System which maintains all the records of all registered vehicles. Once you check the PPSR you will almost know everything about the car you are planning to purchase.