Understanding Vehicle Encumbrance Check. What it means for you if you buy a financially encumbered car

Buying a used car comes with many issues. One of those issues is finding out if the car is financially encumbered. Don’t understand what is a vehicle encumbrance check or how it relates to REVs check? Then, let’s take a look at understanding encumbrance and what is a financially encumbered vehicle.

What does financially encumbered mean?

Simply put, financially encumbered means that there is debt tied up with the vehicle. This could be money loaned and the car used as collateral or from the loan used to buy the car.

You can find this out if you order a PPSR certificate online.

What does financial encumbrance have to do with Revs Check?

If you want to make an informed decision about buying a used car, then you need to do a vehicle finance check, or Revs check. A Revs check can tell you if there is any encumbrance on the item at the time you requested the certificate. You can use this data to make an informed decision going forward with your purchase.

This may mean abandoning the deal altogether. Or you can work with the seller to use your payment to clear the debt on the car.

If you don’t search the database, you could end up with a lemon that owes money.

When you run a REVS Check or PPSR check, you can find out if the car has registered security interest with a single interest registered or has multiple encumbrance registrations. Depending on what you want, what you have agreed to, and how much you want the car, you can decide how to move forward with your car purchase.

What is the main risk of buying an encumbered car?

The car you buy could be repossessed. That’s right, if you buy an encumbered car and the previous encumbrance isn’t paid off, then you may have to give up that car when its repossessed for lack of payment.

You will be out of pocket and out of a car if you make the wrong decision with a used car.

The Importance of a PPSR Check and How PPSR Search can help with An Encumbered Vehicle

If you don’t want to buy a car that could later be repossessed, then run a PPSR check online. Using the PPSR is how to check if a car has finance owing. It is simple to do, and you get a quick and easy to read report plus a government official PPSR Certificate. This PPSR certificate outlines if there is any financial encumbrance on the car.

Now that you understand encumbrance, let’s see you put it to work and request a PPSR report today. Happy car hunting.

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