What is the PPSR and why does it matter?
The PPSR is the Personal Property Securities Register, New Zealand's public record of security interests over things like vehicles and machinery. If a lender has registered an interest, that debt stays attached to the item rather than the seller. Checking before you buy is the only way to be sure you are not inheriting someone else's loan.
The detail
This is the single most important check in a private sale, and the one people most often skip. If you buy a car that still has finance registered against it, the lender can repossess it even though you paid the seller in good faith. You lose the vehicle and the money.
A search takes minutes and costs a couple of dollars. It tells you whether anything is registered against the vehicle by its VIN or registration number.
When we finance a private purchase we run this check before any money moves, and we settle directly with the seller. If there is finance owing, it is paid out as part of the settlement so the vehicle comes to you clear.
Related questions
Does the PPSR cover machinery and boats too?
Yes. It records security interests over most personal property used as security, which includes trucks, plant, machinery, trailers and boats as well as cars.
What if the seller says the loan is paid off?
Ask for evidence, and check the register anyway. A loan can be repaid without the security interest being discharged, and until it is removed the registration stands.
Who removes the registration once a loan is repaid?
The lender who registered it. If it is still showing after a loan has been settled, the seller needs to ask them to discharge it before the sale completes.
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