Check Finance On Car Victoria - Managing Finances

Buying a car in Victoria can be an exciting prospect, but conducting thorough finance checks is crucial to avoid future headaches and financial burdens. A vehicle’s financial history can reveal hidden debts and encumbrances, potentially impacting your ownership rights and financial well-being.

Why Check Finance?

Imagine purchasing a seemingly perfect car, only to later discover it’s subject to an existing loan. The finance company could repossess the vehicle, leaving you without a car and still owing money. A finance check helps prevent this scenario by revealing if there are outstanding debts secured against the vehicle.

What to Check For:

Encumbrances: These are claims or debts registered against the vehicle, often in the form of a car loan. If the previous owner hasn’t fully repaid the loan, the finance company retains a legal interest in the car.
Stolen Status: While not directly related to finance, checking if the vehicle has been reported stolen is equally important.
Written-off Status: A written-off vehicle may have sustained significant damage and could be unsafe or difficult to insure. While not strictly a finance issue, it can impact the car’s value and future resale potential.

How to Conduct a Finance Check:

REVS Check (Victorian Register of Encumbered Vehicles): This is the official Victorian government registry for checking encumbrances. You can perform a REVS check online for a fee. You’ll need the Vehicle Identification Number (VIN) or chassis number to conduct the search.
Personal Property Securities Register (PPSR): The PPSR is a national register that includes information on security interests in personal property, including motor vehicles. A PPSR check is often recommended alongside a REVS check for comprehensive coverage.
Vehicle History Reports: Companies like CarFacts or RevsCheck (private providers) offer comprehensive vehicle history reports. These reports typically include finance checks, stolen status, written-off history, odometer readings, and other valuable information. While they come at a cost, they offer a detailed overview.
Consider a Pre-Purchase Inspection: While not directly related to finance, a qualified mechanic can assess the vehicle’s mechanical condition and identify potential issues that could lead to future expenses.

Interpreting the Results:

If the check reveals an encumbrance, contact the finance company to confirm the outstanding amount and discuss potential solutions. This might involve negotiating with the seller to pay off the loan before the sale or arranging for the finance company to release their security interest upon completion of the transaction.

Due Diligence is Key:

Always perform your own checks, even if the seller provides a seemingly clean report. Verify the VIN on the vehicle matches the documents. If anything seems suspicious, seek professional advice from a solicitor or consumer affairs agency. Taking the time to conduct thorough finance checks can save you considerable money, stress, and legal complications down the road. It’s a vital step in ensuring a smooth and secure car-buying experience in Victoria.