Written byA vehicle identification number (VIN) is the unique 17-character code a manufacturer stamps on a vehicle, used to identify it on registration, insurance and finance records.
Also known as: VIN, VIN number, vehicle identification number, chassis number
Key points
- A PPSR search runs on the VIN, not the plate, and shows any finance registered over the car and any written-off or stolen record.
- Lenders register their security interest against the VIN, which is what lets them repossess the vehicle if the borrower defaults.
- The VIN is fixed for the life of the vehicle; number plates change with owners and states, and engine numbers change with rebuilds.
- It is on the compliance or build plate, at the base of the windscreen, and on the registration certificate and insurance policy.
What the VIN tells you
Every modern vehicle carries a 17-character VIN made up of letters and numbers, with the letters I, O and Q left out so they cannot be confused with digits. The first characters identify the manufacturer and country of build, the middle section describes the model and body, and the tail is the serial number of that particular vehicle. Two vehicles never share one.
Because it never changes, the VIN is the thread that runs through a vehicle's paperwork: the registration authority, the insurer, the manufacturer's recall database, the state written-off vehicle register and the PPSR all key their records to it.
The VIN and a used car purchase
Before handing over money for a used car, buyers run the VIN through the PPSR for a small fee. The certificate shows any registered security interest, which usually means money still owing to a lender, plus written-off and stolen flags. It does not show how much is owing or who has owned the car, but a clear search on the day of purchase protects you if someone later claims an interest in it.
If the search shows an encumbrance, the seller needs to pay out that finance at or before settlement, and the lender's registration needs to be discharged. A dealer must supply clear title; in a private sale it is on the buyer to check.
VIN in a finance application
A lender financing a vehicle asks for the VIN so it can identify exactly which asset it is lending against. It searches the PPSR for existing interests, pays out any prior finance at settlement, and registers its own interest against the VIN, which is what ties a chattel mortgage or secured car loan to the vehicle. The tax invoice and the comprehensive insurance policy must show the same number.
Equipment without a VIN, such as an excavator or a coffee machine, is registered against the borrower's ABN or ACN with a description of the asset, and searched by the borrower's details rather than a serial number. A mismatch between the VIN on the vehicle, the invoice and the registration papers is one of the most common reasons a settlement stalls.
Example
A couple in Toowoomba find a three-year-old dual-cab for sale privately. Before paying a deposit they run its VIN through the PPSR and the certificate shows a security interest registered by a finance company, so the seller still owes money on it. Their broker arranges for their lender to pay the seller's lender directly at settlement, the old registration is discharged, and the new lender registers its own interest against the same VIN. The couple get a clear title, and the seller gets the balance after the payout.
Not to be confused with
- Personal Property Securities Register (PPSR)
- the PPSR is the register of security interests, while the VIN is the number you search it with
- Encumbrance
- an encumbrance is what a VIN search may reveal, a registered interest over the vehicle
Frequently asked questions
Where do I find the VIN on my car?
Most commonly on the compliance plate or build plate in the engine bay or door jamb, on a small plate visible through the base of the windscreen on the driver's side, and stamped into the chassis or firewall. It is also printed on the registration certificate, the insurance policy and the service book.
Can I check if a car has finance owing with the VIN?
Yes. A PPSR search using the VIN or chassis number returns a certificate showing any security interest registered over the vehicle, along with written-off and stolen status. It will not tell you the amount owing or the owner's name. The PPSR does not accept a number plate or engine number for the search.
What is the difference between a VIN and a chassis number?
On a modern vehicle they are the same thing: the 17-character VIN is stamped on the chassis. Older vehicles built before the VIN standard may have a shorter chassis number instead, and the PPSR accepts either. Engine numbers are separate and can change if the engine is replaced.
Why does the lender need the VIN?
To identify the exact vehicle it is lending against, search the PPSR for existing finance, and register its own security interest against that vehicle. The VIN also gives the make, model and year, which feed the lender's valuation and its rules on how old the asset can be at the end of the term.
What if the VIN on the car doesn't match the paperwork?
A mismatch needs sorting out before money changes hands. It can be a clerical slip on the invoice, but it can also mean a rebuilt or stolen vehicle. The usual fix is for the seller to correct the documents, followed by a fresh PPSR search on the number stamped on the vehicle itself. Lenders will not settle on mismatched paperwork.
Related terms
Personal Property Securities Register (PPSR)
The Personal Property Securities Register (PPSR) is the national online register where lenders and suppliers record security interests over personal property such as vehicles and plant.
Read definitionSecurity (collateral)
Security (collateral) is an asset or legal interest a borrower grants a lender, which the lender can take and sell to recover the debt if the borrower defaults.
Read definitionEncumbrance
An encumbrance is a claim someone else holds over an asset, such as a loan secured against it, that limits how freely it can be sold.
Read definitionRepossession
Repossession is the enforced recovery of goods that secure a loan, such as a car, ute or machinery, after the borrower has defaulted on the contract.
Read definitionCar loan
A car loan is a credit contract used to buy a vehicle: the lender provides the funds and you repay them over time with interest.
Read definitionSecured loan
A secured loan is a loan backed by an asset the lender can repossess and sell if the borrower defaults, which usually lowers the cost.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.