Are you sure you are not buying someone else's car debt?
When you’re buying a car, there is always that question of whether or not you’re getting the most for your money. If you’re buying a used car, that question becomes increasingly important, as there might be more wrapped up in the price than you realize. Not only is it important to find out if the car is in good condition, if it has been in any accidents and if it has the features you want, you need to find out if there is debt attached!
How Debt Can Be Attached to a Car
People resell cars all the time, and one of the biggest reasons is that the car is underwater. They have a big burden and need to get rid of it. When this is the case, it means that the amount owed on the vehicle is actually more than the vehicle is estimated to be worth. When you go to sell the car, you’re negotiating with an item of debt, which can make things difficult. A dealership will take on the registered security (debt) of a vehicle and then factor what is owed into the resale. In other words, a car worth $6,000 that has a debt of an additional $2,000 may resale for $11,000. This means you just ate two thousand dollars of someone else’s debt. There is a way to perform a search before buying, so you are aware of any potential costs that may be added.
How to Check for Registered Security
There is a quick way Canadians can check for any debt attached to your potential vehicle. First, start by going online to PPSA. This site will allow you to search vehicles based on the province where the collateral resides and the VIN number. By completing the search, you can easily find out about any attached debt you may be paying off.
Check the VIN
You are required to include VIN number with each search. This can usually be found by standing outside of the vehicle on the driver’s side and looking in the corner of the dashboard where it meets with the windshield. If it is not there, it will likely be on the inside of the driver’s door, where it latches.
No one wants to be put in a bad place when buying a car. The next time you go for a used automobile, do your homework and check for any debt that could be attached. It you don’t, it could end up costing you.