When the Seller Still Owes Finance

• Ask the seller directly whether there's any finance owing on the car.
• Then check for yourself with an official PPSR vehicle search on ppsr.gov.au using the VIN. Money owing usually shows as a registered security interest.
• If the seller is a business, also search against its ACN - see buying from a business for why.

• The seller asks their financier for a written payout letter. Payout figures usually include interest up to a set date, so check the letter is current on the day you settle.
• From the sale price, the payout amount goes directly to the seller's financier, and the balance goes to the seller.
• If you're using finance, your lender handles this - they pay the seller's financier directly as part of settlement.
• If you're paying yourself, pay the financier using the payment details on the payout letter - but confirm those details by calling the financier on a number you've looked up yourself, not one from the seller or the letter.
• Once the payout is received, the financier should remove its registration. Run a fresh PPSR search after settlement to confirm the car is clear.

If the payout figure is higher than the agreed price, the seller has to make up the difference at or before settlement - otherwise the loan can't be cleared. Agree how that will happen before you go any further.

• The seller won't provide a written payout letter, or wants you to pay them the full amount directly.
• The PPSR shows a registered interest but the seller says it's "old" or "already paid" - check with the financier before proceeding.
• Pressure to settle quickly, or payment requests by gift card, crypto or a link the seller sends you.

• Get a written payout letter from your financier before you advertise, so you know your real bottom line.
• Tell buyers upfront. A buyer's lender will pay your financier directly at settlement, and you receive the balance.
• If the car is leased or novated, the lessor owns it - see leased and novated vehicles.

• Interactive checklist & stamp duty estimator
• Buying from a business, trust, estate or lease
• Buying or selling a car interstate
• Buying equipment, plant or a work vehicle privately
• Selling equipment privately
• Selling your car privately

State & territory guides

• Buying privately in New South Wales
• Buying privately in Victoria
• Buying privately in Queensland
• Buying privately in South Australia
• Buying privately in Western Australia
• Buying privately in Tasmania
• Buying privately in the Australian Capital Territory
• Buying privately in the Northern Territory