What to Check Regarding the Car’s History Such as Finance Owing or If It Has Been Stolen?

Check the car’s history for unpaid loans and theft status using the Personal Property Securities Register (PPSR) report.

 

Buying a car can feel like a roller coaster of emotions, you’re excited for the new ride, but wary of any pitfalls. It’s crucial to know the car’s past, not just to avoid a lemon, but to steer clear of legal troubles too.

 

Here’s your guide to checking a car’s history effectively.

Is There Finance Owing?

When a car still has money owed on it, it might not be just a financial burden—it could become your burden if you buy it.

Here’s how to verify this crucial detail:

 

1. PPSR Check:                                                                                                                                            Start with a Personal Property Securities Register (PPSR) check. This government service reveals if the car you’re eyeing is under finance. It’s a small price to pay for peace of mind.
2. Ask the Seller:                                                                                                                                        Directly ask the seller if the vehicle is under any finance agreement. Sometimes, straightforward questions get straightforward answers.
3. Verification:                                                                                                                                                 If the seller claims the car is free from finance, ask for proof like a recent PPSR report or a letter from the finance company stating that the debt is cleared.

When I bought my first car, I learned the hard way about the importance of a PPSR check.

 

I was so excited about the purchase that I overlooked this step, only to find out later that there was a significant unpaid loan associated with the vehicle.

This experience taught me to never skip this crucial check again.

Has the Car Been Stolen?

You wouldn’t want to end up with a stolen vehicle.

 

 

As per stats of Savvy, a vehicle is stolen every 11 minutes in Australia, totaling approximately 38,187 thefts in 2021,

it’s more important than ever to ensure your potential new car isn’t someone else’s old headache:

 

1. VIN Check:                                                                                                                                                      The Vehicle Identification Number (VIN) is your go-to first step. A PPSR check includes theft records which will tell you if the car’s been reported stolen.
2. Police Records:                                                                                                                                      Feel free to contact the local police with the VIN to double-check if there’s anything suspicious about the car’s past.
3. Mismatched Keys:                                                                                                                                      A red flag is if the car has mismatched keys or if the ignition system looks tampered with. These can be signs of a stolen car being disguised.

I remember checking the VIN for a car I was interested in last year.

 

The relief I felt when the report came back clean was immense, especially since a friend of mine had recently bought a car that turned out to be stolen.

It’s a quick check, but it can save you endless headaches.

Registration and Insurance History

Knowing the registration history helps you understand the car’s journey through different hands and locations:

 

1. Rego Check:                                                                                                                                              Use your state’s transport website to do a rego check. This tells you if the car is currently registered, which is a necessity for driving it legally.
2. Insurance Claims:                                                                                                                                Check if the car has had major insurance claims. A vehicle involved in serious accidents might have hidden damage. Insurance history can shed light on this aspect.

Service and Repair Records

A well-serviced car is a good sign. It shows the previous owner took care of it, which can save you from future headaches.

Here’s how to check:

 

1. Service Logbook:                                                                                                                                          Most cars come with a service logbook. Check if the entries are regular and done by reputable service centers.
2. Ask for Receipts:                                                                                                                              Request the seller show receipts for major repairs. This will not only confirm the work was done but also show the quality of the parts and service.
3. Mechanic Inspection:                                                                                                                              If you’re still unsure, get a mechanic to inspect the car. They can spot issues that you might miss.

From my own experience, inspecting the service logbook is something I always prioritize. In one instance, the logbook entries were irregular and it raised a red flag.

 

I decided to ask for more detailed receipts, which revealed some inconsistencies that the seller had not disclosed.

Why This Matters

Having gone through the process of buying several used cars over the years, I’ve come to understand just how crucial it is to be thorough with these checks.

 

Each car taught me a new lesson, but one thing they all reinforced was the importance of doing my homework before making any commitments.

 

Understanding the history of a car isn’t just about ticking boxes, it’s about ensuring your hard-earned money doesn’t go to waste.

 

It’s also about making sure you’re not buying a pile of problems or, worse, a legal disaster. It’s better to spend a day checking than years regretting.

 

Buying a car is a significant investment, and with these checks, you can make sure it’s a wise one. Remember, a smooth drive starts with a smart buy.

 

So, grab these tips and get to checking; your dream car awaits, and now you’re ready to make sure it’s as good as it looks!

FAQ

What are some critical questions to ask when buying a used car in Australia?

When buying a used car in Australia, ask these essential questions:

 

“Can you provide the full service history of the car?” to check for regular maintenance. “Is there any finance owing on this vehicle?” to avoid inheriting debt.

 

“Has the car been involved in any accidents?” to uncover potential hidden damages. Finally, “Can I see the PPSR report?” to confirm there are no encumbrances or theft reports.

 

These inquiries help paint a clear picture of what you’re potentially buying into.