When buying a second hand car, you need to check to see if the seller owes any money to a finance company for the vehicle. When a finance company lends money to someone to buy a vehicle, or a vehicle is sold on hire purchase, the finance company registers a security interest on the Personal Property Securities Register (PPSR) over the car. If you buy that car you do so with the security interest over it.
How do you check to see if there is a security interest over a car you want to buy?
You can check the PPSR yourself by searching online www.ppsr.govt.nz; or
You can text the vehicle’s Registration Number and Vehicle Identification Number (VIN) or Chassis Number to FIND (3463). Generally, the VIN can be found stamped into the vehicle structure, on a metal plate fixed to the vehicle body, or etched on to the rear window of the vehicle. These searches cost $1.
Alternatively, some businesses provide vehicle information services (such as the AA’s ‘Lemon Check’). These will normally involve checking the PPSR as well as various other things, such as the police register of stolen vehicles, details of previous owners, details of any modifications and evidence of major accidents.
What to do if there is a security interest over the car you want to buy?
DO NOT pay any money to the seller. Call the secured party listed (normally a finance company) to see if money is still owed on the vehicle. If money is owing, and the seller tells you this is to be repaid from the sale proceeds, you should pay what is owed directly to the finance company, not to the seller. The finance company will then release its security interest over the car.
If no money is owing, request that the security interest over the car be removed from the register. When you have received confirmation that the security interest is removed you can buy the car.
Remember - if you are buying a second hand car txt 3463 with the registration number otherwise risk the repo man knocking on your door.
