Can You Scrap a Car That's Still on Finance in NZ?

This one trips people up. If a car was bought on finance, the lender almost always holds a security interest registered on the Personal Property Securities Register (PPSR). Until that's cleared, the car isn't fully yours to dispose of — and the financier can chase the debt (and potentially the vehicle) even after it changes hands. (General information, not legal or financial advice — confirm your situation with your lender.)

First, check the PPSR

You can search the PPSR (ppsr.govt.nz) by the car's VIN or plate to see whether a security interest is registered against it. A small fee applies. If there's nothing registered, you're clear to sell. If there is, read on.

If money is still owing

You have a few honest options:

• Pay it out. Ask your lender for a settlement figure, clear it, and confirm the security interest is discharged from the PPSR.
• Talk to your lender first. If the car is dead or written off and worth less than the loan, the lender needs to be part of the conversation — sometimes the scrap proceeds go toward the balance.
• Use the cash toward the debt. The amount we pay for the car can go straight to reducing what you owe.

How we help

Tell us upfront if there's finance owing. We'll quote the car, and you can use the payment toward your settlement. Once the security interest is discharged, the disposal paperwork is the same as any other car.

Frequently asked questions