At the most recent AADA Used Car Dealer Forum, concerns were raised by dealers from all states about delays in removing financial encumbrances from vehicles on the Personal Property Securities Register (PPSR). The delays occur after the dealer has remitted the final payout amount to the party with the PPSR security interest. To help identify issues and improve PPSR processes, the AADA is asking dealers to complete a short survey capturing your experiences and any challenges with the PPSR.
Background
Legislative Requirement
Under Section 167(2) of the Personal Property Securities Act 2009 (Cth), secured parties must lodge a financing change statement within five business days of the security interest being satisfied. Dealers are concerned that this requirement is not being met by finance companies and auction houses.
Delays by finance companies and auction houses in not removing registrations from the PPSR after a security interest expires results in negative consequences for individuals, businesses and the credit system. Those delays can force dealers to cancel sales contracts, as vehicles cannot be delivered without clear title or inconvenience consumers who just want to take delivery of their purchased vehicle.
Other Key Dealer Concerns with the PPSR
Dealers have advised AADA that:
- A PPSR encumbrance removal can at times take up to three to four weeks after payout.
- Uncertainty about whether a PPSR certificate provides sufficient assurance of clear title.
- High fees charged by some private providers compared to the $2 PPSR search fee from the PPSR administrator, the Australian Finance Security Authority (AFSA).
AADA Action
AADA has engaged extensively with AFSA to address the slow discharge of PPSR encumbrances by finance companies and auction houses, other operational issues, and explore efficiencies for dealers and consumers. AFSA are keen to hear the Australian dealers’ experiences with the PPSR.
Have Your Say
To help identify issues and improve PPSR processes, AADA invites dealers to complete an eight-minute survey covering:
- Dealer interactions with finance companies.
- Auction house practices.
- Dispute resolution and the PPSR Registrar.
- Securing parts supply for aftermarket and repair sectors.
It should be taken by your dealership’s Finance and Insurance Manager and/or your dealership’s Chief Financial Officer or Administrative Manager.
AFSA will review the survey outcomes and has expressed an interest in understanding dealer experiences with the PPSR. Dealers are encouraged to visit the AFSA Regulatory Action Statement 2025-26 to view other areas where AFSA will focus on the 2025-26 period.
The survey will be open for responses until 15 December 2025.