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Clear title of a vehicle means that the vehicle does not have any money owing on it.
If you owe money on your vehicle to a finance company, and you sell it privately without telling the buyer, that vehicle may be repossessed from the buyer by the finance company. Also, by selling an encumbered vehicle you may be liable to legal action or even prosecution.
Buyers of vehicles may check to see if a vehicle is encumbered by contacting PPSR.
If you trade-in your vehicle to buy a new vehicle from a dealer, the dealer will reduce the trade-in value by the amount you still owe on the vehicle.