Buying a used car in Australia can be exciting. It’s often cheaper than a new car and can save you a lot of money. But before you hand over your cash, there’s something very important you need to know — hidden encumbrances. This one thing can turn your good deal into a big problem.
Many people think that just checking if a car runs well is enough. But what if the car is still under finance? Or what if it was stolen? If you don’t do the right checks, you could lose the car — and your money too.
Let’s break it down in simple terms.
What is a Used Car Encumbrance?
A used car with an encumbrance means it still has money owing on it. This happens when someone buys a car with a loan, and they haven’t finished paying it off yet.
If you buy that car, and the loan isn’t paid, the bank or lender can take the car from you. Even though you paid the seller, the lender still owns the car until the loan is cleared.
Learn more about how this works here:
👉 What Is an Encumbrance? Why It Can Ruin Your Car Deal
Why Hidden Problems in a Used Car Matter
A used car can have other hidden issues too. It might be:
- Stolen
- Written off from an accident
- Water-damaged from floods
- Still under finance
These things are not always easy to see just by looking at the car. But they can ruin your car-buying plans. Imagine buying a car only to find out later that it was stolen. You won’t be able to keep it — and you won’t get your money back.
Check this story out:
👉 Is That Bargain Car Too Good to Be True? It Might Be Stolen
How to Stay Safe When Buying a Used Car
The best way to avoid hidden problems is to do a full car history check. These checks will tell you:
- If there is any money owing
- If the car was written off
- If the car was stolen
- If the car has been damaged in floods
There are a few trusted services in Australia to help you with this.
👉 REVS Check
👉 PPSR Check
👉 VIN Check
👉 Car History Check
All you need is the VIN (Vehicle Identification Number) or rego number. These checks only take a few minutes and are worth it.
What Is a VIN and Why Is It Important?
A VIN is a unique 17-digit number that every car has. It’s like a car’s fingerprint. You can usually find it:
- On the dashboard
- On the driver’s side door
- Or on the car’s registration papers
When buying a used car, always check the VIN and run a quick search before you buy. You can do this easily with a VIN Check.
Use the PPSR Report to Catch Big Problems
A PPSR Check (Personal Property Securities Register) will tell you if a used car is under finance or listed as stolen. This is a must-do before you buy any car in Australia.
👉 How to Use a PPSR Report to Catch a Stolen Car
These reports are cheap (often under $10) and can save you thousands.
What to Do Before You Buy
Here’s a simple checklist to follow when buying a used car:
✅ Get the VIN number
✅ Do a REVS Check
✅ Do a PPSR Check
✅ Do a full Car History Check
✅ Ask for a receipt and make sure the seller is the owner
✅ Don’t rush the deal — take your time
Real Stories from Buyers
Many people in Australia have lost their used car because they didn’t do a check first. Some bought cars that were stolen. Others bought cars still under finance. They ended up losing the car and the money.
Don’t let this happen to you.
Final Words: Protect Yourself Before You Buy
A used car can be a great deal — but only if you do it right. Always check for hidden encumbrances. A quick online check can tell you everything you need to know.
Doing a REVS Check, PPSR Check, or VIN Check could be the smartest move you make.
Make sure the car has no hidden debt, hasn’t been stolen, and is safe to drive.
Before you buy, check it out — it’s simple, cheap, and could save you big time.
Helpful Links for Buyers:
- VIN Check Australia
- REVS Check Australia
- PPSR Check
- Car History Report
- What Is an Encumbrance?
- PPSR for Stolen Car Tips
- Is That Car Stolen?
If you need help checking a used car, use the trusted tools above. It only takes a few minutes and could save you thousands!