Buying a Used Caravan? Here’s How to Protect Yourself For $2
Updated: Oct 19, 2023
So you have decided to buy a used caravan! Purchasing a second-hand caravan in Australia can be an exciting experience, but it’s important to ensure that the caravan is free of any outstanding finance before making the purchase. Here’s how to check if a caravan has finance on it before you buy.
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First, it’s important to understand that a caravan with outstanding finance means that the previous owner has not yet paid off the full amount owed to the lender. If you purchase a caravan with finance still outstanding, you may become responsible for paying off the debt or have the caravan repossessed.
The reason why a $2 search can save you a caravan full of heartache…
A friend of ours was looking to purchase a second-hand caravan and had found one that they were interested in. They had heard about the importance of conducting a PPSR check to ensure there was no outstanding finance, but they thought it was an unnecessary step since the seller seemed trustworthy.
Despite my advice to complete the check, my friend was convinced that it wasn’t worth the extra effort and $2 expense. They ended up purchasing the caravan without conducting a PPSR check.
Unfortunately, a few weeks after the purchase, our friend received a notice from a finance company claiming that there was still outstanding finance on the caravan. The previous owner had defaulted on their payments, and the finance company was now claiming the caravan as collateral.
My friend was left with no choice but to hand over the caravan to the finance company, losing all the money they had paid for it. If they had completed a PPSR check beforehand, they would have avoided this costly mistake.
This cautionary tale highlights the importance of conducting a PPSR check before purchasing a second-hand caravan in Australia. It may seem like an unnecessary step, but it can save you a lot of money and heartache in the long run.
Buying a used caravan? How to check if a caravan is under finance?
To check if a caravan has finance on it, the best place to start is a $2 search of the Personal Property Securities Register (PPSR) website. This is a government-run database that allows you to search for any security interests, including finance, registered against the caravan.
To conduct a search, you will need to obtain the caravan’s Vehicle Identification Number (VIN) or chassis number. This can usually be found on the caravan’s registration papers or a metal plate on the caravan itself.
Once you have the VIN or chassis number, head to the PPSR website and complete a search. The search will provide you with a report that details any security interests registered against the caravan, including finance.
It’s important to note that the PPSR search is not foolproof and may not show all security interests. For added peace of mind, you may also want to consider obtaining a CarHistory report or conducting a REVS (Register of Encumbered Vehicles) check.
What does unencumbered vehicle mean?
Unencumbered, means free from any legal or financial obligations or encumbrances, such as outstanding loans. In the context of buying a used caravan, an unencumbered caravan means it has no outstanding finance, legal, or other financial obligations that would affect the transfer of ownership.
How do you check a VIN in Australia?
In Australia, the process of checking a VIN registration can vary slightly depending on which state or territory the vehicle is registered in. Here are the relevant websites for each state/territory where you can check a VIN registration:
It’s important to note that the specific information available on each website may vary, and some sites may require payment or additional details to access information about the vehicle’s history or registration. The links are current as at March 2023.
I don’t want to spend $2 on a PPSR check when buying a used caravan?
A free rego check provides you with the basic information about your vehicle, however, sometimes you may require more details. If you are uncertain about the vehicle’s history, such as the possibility of it being stolen or having outstanding debts, it’s advisable to purchase a more comprehensive PPSR report. This report includes a PPSR check, a stolen check, a written-off check, a finance check, an odometer check, a price/odometer comparison, a vehicle valuation, a VIN check, and first sale information. With this in-depth report, you’ll have a better understanding of the vehicle’s past and be able to make an informed decision about your purchase. It’s $2! And a great spend for piece of mind on a big investment.
It’s crucial to check for any outstanding finance on a caravan before purchasing it second-hand in Australia. Conducting a $2 search on the PPSR website is a great starting point to ensure a safe and secure purchase. Good luck!
Happy Roadtrippin’
