Buying a Car? | Understanding PPSR for Automotive Industry
- May 12, 2020
When you’re buying an automobile, one of the things you need to be sure about is PPSR. PPSR or Personal Property Security Register is an online registration that helps in protecting consumers when they go to buy personal property such as automobiles. The PPSR is particularly important when you’re running a business. You can never know if someone is claiming an interest against the goods or assets you’re looking to buy. Through PPSR, you can register on a single, national online noticeboard which would help you check if someone is trying to claim the property you’re interested in buying.
When it comes to the automotive industry, the PPSR would take care of a few things that are mentioned as following:
1. Consignment arrangements: A proper arrangement would be made if your business requires delivering the vehicle to someone
2. Leasing Vehicles to Employees: If your business policy allows the employees to lease vehicles, the PPSR would help you in that as well
3. Selling spare parts on terms: Being a part of the automotive industry, spare parts are always available and PPSR would help you in selling them.
4. Selling, financing, and bailing out cars, trucks or trailers
5. Buying secondhand vehicles: if your company is looking to buy second-hand vehicles, the PPSR would help you with that too.
PPSR benefits for my business:
It’s only fair to ask questions regarding something benefiting your business. PPSR can provide your business with many benefits such as:
For a repairer, the most essential tool in a business is a repairer’s lien. The PPSR is providing a repairer’s lien that would allow the repairers to keep the vehicle until it’s paid for the work done on it. The repairer’s liens arise by the general law and not through a security agreement, which is why it is not a security interest under the PPS Act. These kinds of Liens have no need to be registered on the PPSR. The PPS Act recognizes its priority over other security interests.
Second-hand motor vehicles:
One should be especially alert when buying a second-hand vehicle because if the research isn’t done right, the automobile, has a risk of getting repossessed. The PPSR can be very beneficial here since it would help you check whether or not the vehicle can be taken back by the person who owned it. You can also get information about any available police records regarding the vehicle of interest. The PPS Act secures users to buy any transportation from a licensed motor deal. So you will be able to enjoy your vehicle free of any security interest.
Increased Financing options:
With the help of PPSR, financing opportunities for a business increase. Financers can take look at the interests registered against your good and it is easier for them to make a decision on whether or not they want to lend you the vehicle. Now, the financers have a single, national register where they can record any security interest that they might have. This process makes it easier to give the financers the confidence that their interests are secured.