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General information only: Contracts, notices and individual rights can differ. Contact the lender, insurer, financial counsellor or legal adviser as appropriate.
Quick answer
A secured car normally cannot be sold safely by simply promising to repay the lender later. Obtain a current payout, establish the sale value and use a settlement process that pays the secured lender and removes its PPSR interest before or as ownership changes.
What to do now
- Request a dated payout figure from the lender
- Check the vehicle’s current PPSR result
- Estimate a defensible sale value
- Do not promise clear title until the discharge process is confirmed
Start with payout, not the statement balance
A payout figure is the amount required to close the contract on a specified date. It can differ from the visible principal balance because of accrued interest, fees, rebates or timing. Ask how long the quote is valid and how a later settlement date changes it.
Positive and negative equity create different settlements
If the sale proceeds exceed the payout and sale costs, the remaining amount is positive equity. If the payout is higher, the shortfall is negative equity and normally must be funded or otherwise agreed before the lender releases its security.
Protect the buyer and verify every payment instruction
A private buyer should not be asked to rely on a later promise to clear finance. The settlement can direct the payout amount to the lender and only the remaining sale proceeds to the seller. Confirm when the PPSR registration will be removed and keep the discharge evidence.
- Match the VIN across payout, PPSR and sale documents
- Verify lender payment details independently
- Record the total price and split disbursement
- Confirm registration transfer separately from finance discharge
Positive-equity sale
Assume an agreed sale price of $30,000 and a lender payout of $24,500.
- Buyer or settlement process pays $24,500 to the lender.
- The remaining $5,500 is paid to the seller, subject to agreed sale costs.
- The lender closes the loan and removes its registered security interest through its process.
Result: The seller’s gross positive equity is $5,500. Registration transfer and proof of discharge are still separate completion steps.
Primary sources
Government and regulator sources checked on 8 August 2026:
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