Even though it is illegal in the UK to sell a car that has finance pending on it, many people doing this. If suppose you bought a vehicle that has outstanding finance on it unknowingly, you have to pay the debts. It’s a big problem, right?
So, when buying a used vehicle, an outstanding finance check will reveal any money tied to it and gives you peace of mind that the car actually belongs to you.
What do Outstanding Finance Checks Reveal?
Quite simply – An outstanding finance check will uncover if any money is tied to the car you are buying. You may think that not every seller is involved in this fraud, but do you know that as many as 1 out of 3 checks reveals hidden car history?
So, it is imperative to carry out an outstanding finance check before committing yourself to buy.
If there is pending finance on the car, we will reveal the following details:
- Name of the finance company to which money is tied
- Finance company contact number
- Agreement date
- Agreement term
- Agreement number
- And Agreement type.
When our report tells you that the car is on finance, it is a great idea to contact the finance company and check whether the previous owner has settled the finance or not. You will get all the details that the finance company will require. In contrast, if there was no outstanding balance on the car, you can buy the vehicle knowing that you are safe and the car will belong to you after you settle the deal because you get all hidden details in our car history check.
Why Should I Consider an Outstanding Finance Check?
According to Finance and Leasing Association statistics more than 91% of vehicles were bought on finance. So, when dealing with private dealers, you should be very cautious because if you buy the car on finance, you may have to pay a massive bill of finance agreement plus your own. You cannot legally possess the vehicle on finance, it is the property of the finance company, and they can take possession whenever they want. Do not ever consider it unimportant because 1 out of 3 checks shows finance on the car. So, it is not as uncommon as you may think.
What If A Vehicle Check Reveals There’s Still Finance On The Car?
After knowing that the car has an outstanding balance, you should contact the owner or seller and settle the accounts before the dealing. If the seller denies that the car has money tied to it, it is enough to walk away from the deal.
Contact the finance company and explain your situation to them in writing or by sending an email to them. And keep copies of any correspondence you send or receive. Do not even think about ignoring and delaying this problem; it may result in losing your car. For better assistance, contact Citizen’s Advice.
Can I Keep the Vehicle that has Outstanding Finance?
If you have bought a car that has outstanding finance, you should seek legal advice before informing the finance company and prove that you were unaware of it. In theory, you may have the right to keep it, but do not rest easy just yet – the finance company will not gift you the car; they would still want their money back for the outstanding finance. So, they will investigate themselves, and you must respond to all their queries and questions whether you like it or not.
Still, if all your explanations fall on deaf ears, you may end up losing the car or being forced to pay someone else debts resulting in paying for the car twice.
So, why all this hassle when you can order a vehicle check to know is there still finance on a car for just £9.99.
Vehicles on outstanding finance are the property of the specific finance company; it is illegal in the UK to sell them without their consent. But sadly, it is not enough to stop people from doing so. If you are buying a used vehicle, check if it has any outstanding finance pending on it, or else you may end up losing your vehicle to its rightful owner – the finance company.