With so many vehicles introduced in the market, there are many people who buy and sell used vehicles. In some cases, these vehicles might be stolen and sold too. This can lead to legal and financial complications for the buyer. Also, most of the people buy vehicles on loan or some EMI options. Many times they might not be able to pay off the loan completely and might sell the vehicle to another person before the debt is completely paid off. In that case, the bank or the financing institute has the rights to repossess the vehicle from the new owner of the vehicle. This can be a huge loss for the buyer.
Thus in order to protect the buyers of second-hand vehicles in Australia, the government announced the Personal Property securities register popularly known as PPSR on 30 January 2012. PPSR check is very much important to stay safe and secure before buying a used vehicle. This check covers situation wherein a lender takes a security interest from an organization for a personal property as security for a loan and registers the security interest too.
An example of this situation is when a bank holds a security interest over a car that you are paying off your car loan for. If the buyer does not pay off the loan completely and becomes a defaulter then the lender has the right to repossess the car in order to recover the debt. So it is important to do a ppsr check before you buy a used vehicle to know that the personal property you are buying has no security interests or debts pending on it. Personal property here means property other than land or real estate. If there is a pending debt then the bank or lender can take the vehicle from you even if you paid the amount for it to the seller.
The PPSR register is —
- managed by the Government of Australia
- Covers security interests associated with most of the personal properties.
- Includes historical data from previous registers associated with security interests.