Glossary
Security interest
A lender's registered legal claim over an asset, like your car, that secures a loan. It's released when the loan is repaid in full.
By Leverage Finance · Updated 17 July 2026
A security interest doesn't mean the lender owns your car. It means that if the loan defaults, they have a legal right to repossess and sell the car to recover what's owed, and that their claim ranks ahead of anyone who later lends against the same vehicle.
Security interests over vehicles are registered publicly on the PPSR. Anyone can search it, which is how used-car buyers check whether money is still owing on a car before purchase. In a refinance, the swap of security interests happens at settlement without you doing anything.
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