The $2 check that can stop you buying someone else's debt

Here's an uncomfortable fact about Australian cars: if money is owed on one and the lender has registered its interest, that debt can follow the car rather than the person who borrowed it. Buy the car and, in the wrong circumstances, you can find a finance company asking for it back.

The Personal Property Securities Register is the official national record of those interests. Searching it is the cheapest insurance you'll ever buy: $2 online, or $7 through the contact centre, with no GST.

What a search shows

• Whether a security interest is registered, in plain terms whether a lender still has a claim on the car.
• Where available, written-off status from the national vehicle database.
• Where available, stolen status (not available for Tasmanian vehicles).
• Registration details, expiry, and make, model and colour to match against the car in front of you.

Match the VIN on the report to the VIN on the car. Not the ad, the car.

Its blind spots

The register itself says the national vehicle data it relies on "is not always available or up-to-date", and you won't be refunded if it's missing. Treat a clean result as a good sign, not a guarantee, and pair it with a proper look at the service history and an independent inspection.

Do you need one at a dealer?

Buying from a licensed dealer gives you protections a private sale doesn't, and a reputable dealer will have checked the register before listing the car. Running your own search still costs $2 and settles any doubt. It's also worth doing on your trade-in before you arrive, so there are no surprises when the dealer runs theirs.