Understanding vehicle security
Understand how a PPSR security interest works, whether you can keep driving, what your responsibilities are and what may happen if repayments are missed.
A car-secured loan does not usually mean handing over your vehicle at the start. Instead, the car is used as security, while you generally keep possession and continue driving it during the loan term. This guide explains the PPSR registration, vehicle conditions, insurance duties, repayment responsibilities and possible enforcement action. It is intended for Australians considering or already using a secured loan, including people reviewing the car-secured loan process. The key point is simple: you keep using the car when you meet the contract, but missed repayments can put the vehicle at risk.
Written by Justin C
With over 8 years of international experience in client service, operations and leadership within the finance and technology sectors.
View author profileA secured loan agreement is a contract where an approved asset supports the borrowing. For the AutoSwift Finance EquiMax Loan, a registered vehicle or approved asset may have a security interest recorded on the Personal Property Securities Register, known as the PPSR. You generally retain possession and continue using the vehicle, provided you meet the repayment and other contract obligations.
Important risk notice
This is a secured loan. If you fail to meet your repayment obligations, your secured asset may be repossessed.
The PPSR record indicates that the vehicle supports the loan. It gives the lender contractual rights if the loan goes into default, but it does not automatically mean the lender takes physical possession at the beginning.
Under the EquiMax Loan structure, you keep full use and possession of the vehicle throughout the loan term. This is different from a vehicle pawn arrangement where the vehicle may be physically held.
The standard requirement is an unencumbered, registered and comprehensively insured vehicle in your name. Cars, utes and vans may be considered individually, and universal vehicle age or kilometre limits are not published.
Check vehicle requirementsAfter the loan is fully paid and the contract requirements are met, contact AutoSwift Finance to ask about release or removal of the PPSR security interest. Keep written confirmation for your records.
What to do: Check the agreement to confirm the vehicle details and whether another approved asset is included as security.
What success looks like: You can clearly identify the asset supporting the loan.
Common mistake to avoid: Do not assume that selling the car removes the debt or the lender’s security interest.
What to do: Confirm that the lender will register a PPSR security interest and understand the lender’s rights if the loan defaults.
What success looks like: You understand that registration records security over the vehicle but does not itself take the car away.
Common mistake to avoid: Do not confuse a PPSR registration with immediate physical repossession.
What to do: Keep the vehicle registered, maintain comprehensive insurance where required and follow contract rules about maintenance or dealings with the car.
What success looks like: Registration and insurance remain current throughout the loan term.
Common mistake to avoid: Do not let insurance lapse because the vehicle remains in your possession.
What to do: Follow the agreed repayment schedule. The EquiMax Loan has a fixed 12 month repayment term, with weekly, fortnightly or monthly repayment options.
What success looks like: Payments are made as scheduled and your account does not fall into arrears.
Common mistake to avoid: Do not wait until a payment is missed before asking about support.
What to do: Contact AutoSwift Finance as early as possible if you are experiencing financial difficulty or cannot meet a scheduled payment.
What success looks like: You have discussed your situation before the account escalates into a default.
Common mistake to avoid: Do not ignore calls, notices or repayment problems.
What to do: If you choose to pay the loan early, request a payout figure and ask how the PPSR security interest will be released after the contract is satisfied.
What success looks like: The loan is confirmed as paid and you receive information about the PPSR release.
Common mistake to avoid: Do not rely only on a bank transfer receipt as proof that the security has been removed.
| Problem | Cause | Fix |
|---|---|---|
| You want to sell the car | The vehicle is still subject to a PPSR security interest. | Review the contract and contact AutoSwift Finance before advertising or transferring it. |
| A scheduled payment is returned | The payment account may not have had sufficient funds. | Contact the lender promptly, review the $35 Dishonoured Payment Fee and discuss the next payment. |
| Insurance is about to expire | A renewal notice was missed or a policy was not renewed. | Renew the required comprehensive cover and keep evidence of the policy. |
| You are struggling to repay | Your income, expenses or circumstances have changed. | Contact AutoSwift Finance on 1300 894 686 or at cs@autoswift.com.au as early as possible. |
The EquiMax Loan provides borrowing from $2,100 to $5,000 with a fixed 12 month repayment term. The fixed interest rate is 47% p.a. Rates and fees apply. Refer to our Terms and Conditions for full details.
Fixed interest rate of 47% p.a. Rates and fees apply. Refer to our Terms and Conditions for full details.
| Fee | Amount |
|---|---|
| Establishment fee | $400 |
| PPSR Check fee | $2 |
| PPSR Registration fee | $6 |
| Credit Check fee | $8 |
| Total fixed upfront fees | $416 |
| Application fee | $0 |
| Monthly account-keeping fee | $0 |
| Early payout fee | $0 |
| Dishonoured Payment Fee | $35 |
| Reschedule Fee | $25 |
The $416 fixed upfront fees are deducted from the amount borrowed at the start. The comparison rate is 65.61% p.a. based on a $2,500 loan over 24 months. This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or loan amounts will result in a different comparison rate.
AutoSwift Finance offers the EquiMax Loan, a secured medium-amount credit product for eligible Australians who can provide approved security and demonstrate capacity to repay without substantial hardship. The online application and digital servicing can help you review the product information and submit the required details in one place.
Use it when you need a secured loan assessment and have acceptable vehicle security. It may not suit someone who cannot demonstrate repayment capacity or provide the required security.
This is a secured loan. If you fail to meet your repayment obligations, your secured asset may be repossessed.
Read EquiMax Loan detailsYes, under the EquiMax Loan structure, you keep full use and possession of the vehicle during the loan term. A PPSR security interest records the lender’s security over the asset, but it does not automatically mean the car is physically taken away. You must continue meeting the contract requirements, including repayments, registration and insurance obligations where required.
Learn about keeping your carPPSR registration means the lender records a security interest over the approved vehicle or asset. It helps establish the lender’s rights under the agreement if the loan defaults. It can also affect your ability to sell, transfer or refinance the vehicle while the loan remains outstanding, so check the contract first.
Understand PPSR securityA missed or returned scheduled payment may result in a $35 Dishonoured Payment Fee, and a $25 Reschedule Fee may apply if a payment is rescheduled. More importantly, repeated or unresolved missed payments can place the loan into default under the contract. Because the loan is secured, enforcement action may include repossession, subject to the contract and applicable law.
See repayment support optionsA PPSR security interest may affect your ability to sell or transfer the vehicle while the loan is outstanding. Do not assume that a sale removes the debt or releases the lender’s security. Review the contract and contact AutoSwift Finance before making arrangements with a buyer or another lender.
Check the rules for selling a secured carEarly payout is available subject to the terms of your contract, and the early payout fee is $0. Once the loan is fully paid and the contractual requirements are met, ask AutoSwift Finance about releasing or removing the PPSR security interest. Keep confirmation of both the payout and the security release for your records.
Early payout is available subject to the terms of your contract.
Under a secured loan agreement, you generally keep using your car while the lender records a PPSR security interest over it. Your main responsibilities are to make repayments, maintain required registration and insurance, and follow the contract before selling or transferring the vehicle. If repayments become difficult, contact AutoSwift Finance early rather than ignoring the problem. Reviewing the agreement carefully before signing can help you understand both the convenience of keeping the car and the consequences of default.