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Outstanding Finance Check – What Will You Get?

Buying and selling a car with outstanding payments is against the law in the UK. Unfortunately, this doesn’t stop people from doing it. If you own a car with outstanding finance, you will have to prove that you have a legal right to own it.

This will be tough because the finance company technically still owns the car. If you do not settle the due finance yourself, the financing company may repossess the vehicle. An full vehicle history  will give you complete peace of mind that your car is truly yours.

What does Outstanding Finance on a car mean?

Outstanding finance on a car means that the vehicle has some money tied to it. In simple words, the previous owner is liable to some money and the car is currently the property of the lender or any finance company. The finance company or the lender is the car’s registered keeper.

Therefore, the “so-called” owner has no right to sell the vehicle to others until the debt is paid. Plus, it is not just a matter of rights; In the UK, it is illegal to sell a car on outstanding finance. Know that, in the UK, two million cars were recently bought on finance as per the report of Statistic.

What do the Outstanding Finance report Includes?

Below is the example of report you will get if the car has any unpaid debts on it.

  • Name of the finance company to which money is tied
  • Finance company contact number
  • Agreement date
  • Agreement term
  • Agreement number
  • Agreement type.

..and 30+ important hidden history.

Why should I bother with an Outstanding Finance Check?

Selling the car on finance is like someone telling you to pay their debt. Put simply, if you buy a vehicle on outstanding finance, the lender or finance company will ask you to settle the previous owner’s debt. Otherwise, they will take the car from you because they are the rightful owners and to be honest, they are on the right side of the law too. What are your rights in such cases? Go here to know consumer rights in detail.

What happens if you try to explain your situation to the finance company? Well, they won’t listen to you and ask you to pay the car’s full amount if you want to be the owner. So, you don’t have much choice after buying a car having finance.

Therefore, it is crucial to always do your due diligence before buying a used vehicle. And if you think you can trust private dealers.

What type of financial deals that a car may have?

There are multiple types of vehicle outstanding finance. However, these are most commonly offered in the UK market.

Hire Purchase

In the hire purchase, the buyer agrees on paying 10% as a down payment and the remaining amount as installments. The installment amount and time period vary from one company to another. However, after the agreement completes its period, the lender must own the vehicle.

Personal Contract Purchase (PCP)

The PCP agreement has similar conditions of hire purchase except one. The borrower gets an option to take full ownership or a new PCP deal when the agreement reaches its final date.

Lease-Purchase and Personal Contract Hire

In the lease purchase and personal contract hire agreements, the lender has no right to take the vehicle’s ownership even after the contract deadline. If you ever find such a vehicle, inform the lending company or the Police immediately.

In either or way, when your car has any of these financial deals, you have to settle the remaining debts to enjoy the ownership. Until then, the finance company is the owner of the car.

Is there any way to know how much finance is pending on a car? 

One of the easiest ways to check the pending finance status is running an outstanding finance check and looking into the report. This will tell you if the car has any outstanding debts.

This report may provide you with the essential information’s whether the vehicle has any debts against it and has ever been involved in an accident or stolen, etc. Suppose you’re buying a used car from a dealer or garage. In that case, you might be able to ask them to conduct these checks on your behalf, or you might locate and use an appropriate check service yourself if you’re not sure of the seller’s reliability.


1. How do you check if a car has outstanding finance?

An effective method for determining a person’s outstanding financial status. A car finance check is the best way to buy a car. As a result, you will receive details about the lender, the financial agreement, and contact number. Make sure the seller has cleared the title before buying.

2. Is it possible to sell a car that has outstanding finance?

It’s technically not possible without consulting your finance provider. Since you do not legally own the car, you cannot sell it on credit.