There is a financial interest in this vehicle. It is very likely that money is owing on it.

A person or company has registered a security against the vehicle indicating they have a financial interest in the vehicle.

These parties are shown in the VIR as 'secured parties'.

Should the money owed to the secured parties not be repaid, then the secured parties can legally repossess and sell the vehicle to recover the money.

Reasons for the security could include

• The vehicle was purchased using finance or a loan
• The vehicle may have been used as collateral for other purposes
• The vehicle has an outstanding repair bill
• This is an old security interest that has not yet been removed from the registry

It is important to match the details of the security (for example, vehicle make, model, year, plate and VIN) with the vehicle description on the VIR, and against the vehicle physically.

It is common for the VIN to differ by one or two digits because these long numbers are often mistyped.

Call the secured party listed on the VIR to see if money is still owing on the vehicle.

If the secured party says the security has been discharged and is no longer valid, be sure to ask that the security be removed from the registry immediately, and confirmation of this be sent to you.

If the secured party confirms that the security is valid, then ask them how you should proceed with the vehicle purchase.

They might want the seller and the buyer to conduct the purchase at their offices. In this way the secured party can obtain payment for the loan directly from the buyer.

If you purchase a vehicle with a valid security registered against it, you run the risk having the vehicle repossessed without any compensation to you whatsoever.