on 03-02-2017 12:09 PM
I have a secured personal loan that is for a car I purchased. I want to sell my car, and the buyer wants proof that the personal loan is tied to the car. This isn't obvious anywhere as the loan just has my name on it, and I can see why the buyer is concerned. I went in to a branch to ask for the final payout amount, but the paperwork they gave me was just a print out of my loan balance. Again no mention of the car. What do I have to do to prove to the buyer that my secured personal loan is for the car?
03-02-2017 02:00 PM - edited 03-02-2017 02:02 PM
Hi @MPhoenix, we recommend whenever buying a car to do a Personal Property Securities Register check ,(PPSR) to check if there are any loans against the car. Car finance uses the car as security, the loan is applied to the car, not its owner. The owner is still obliged to repay the loan, and until they do any unpaid amount on the loan is held against the car, not the borrower. If the buyer would like to confirm that your secured loan is against the car they can do the check here.
I've just found this page via the PPSR government website which may be helpful