Check if a car has any finance agreement

Outstanding Finance on a car

Check if a car has any finance agreement.
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You should always make sure that the vehicle you want to buy has outstanding finance before making any purchase. It is one of those essential checks which every potential buyer needs in order for him or her not get stuck with an unplanned loan payment on their new wheels!

Make sure the vehicle you buy does not have any finance agreement

One of the most vital checks when purchasing a vehicle is determining if the vehicle has outstanding finance. To sell a car, the outstanding balance, any unpaid fees, or other obligations must be settled and paid off.

How to check if a car is on finance?

Check the remaining amount of finance on a car by entering the vehicle registration and performing a car finance check. This will give you the date of the finance agreement, as well as the phone number of the finance company. Run a check and verify is there any car finance owned on your chosen vehicle. If report shows finance agreement you could make a final decision of buying it or not.

What if a car finance check indicates about the finance status?

It reveals the following information:

  1. Transaction Date: The date of the first transaction between the company and the buyer.
  2. Agreement Date: The day on which the buyer signs the finance agreement.
  3. Agreement Type: Reveals if the car is bought on PCP, HP, etc.
  4. Agreement Term: The terms of the given agreement.
  5. Vehicle Description: Reveals the vehicle's make and model.
  6. Agreement Number: Shows the specific agreement number.
  7. Finance Company: Unveils the finance company's name.
  8. Contact Number: Provide the finance company's contact number.

Why should I bother about an outstanding finance check?

Because one in every three checks reveals an unfavourable history that potential purchasers are unaware of, an outstanding finance check will provide confidence that there is no outstanding balance on the vehicle.

You will be able to walk away from the sale if the information presented before any money exchanges is not as good as it initially appeared.

What Happens if I Buy a Used Car with Finance?

If you bought the car with no idea that it has outstanding finance, it is important to seek legal advice first and the contact the finance company and showing that you were an innocent buyer. To avoid these difficult circumstances, performing an outstanding finance check before purchasing any used car is advisable.

What documents should I look over before purchasing a financing vehicle?

The paperwork you need to examine is the same whether the seller is trading in a financed vehicle or selling one outright.

As a buyer, you must carefully study these documents to ensure that the transaction goes as smoothly as possible.

These are:

  1. Check for the originality of the V5C logbook for DVLA watermark to ensure it is genuine.
  2. The V5C paper with the keeper's name on it.
  3. The vehicle's service history reveals the condition of the vehicle you're about to purchase.
  4. MOT history that explains system failures and any advisory notes.

Is it Legit to Sell a Car with Outstanding Finance?

Selling a car on outstanding finance is illegal. Most sellers are well aware of the consequences of selling a car on finance. However, it is still a common fraud, and innocent buyers unwillingly fall for it.

Answering Your Questions

Outstanding finance occurs when the previous owner still owes money on the vehicle but decide to sell it. They are committing fraud by doing this, passing the vehicle without disclosing its finance agreement.

If you had genuinely bought the car without knowing about its outstanding finance, you may have right to keep it theoretically.

This means that you have obtain the vehicle in good faith without being aware of the problem. But there is a high chance for the finance company to cease your vehicle as the ownership still remains with them.

If you wish to sell your car when it is still on finance, then there would be a process that needs to be followed to sell you lawfully.

An essential step would be to obtain a final payment. Also, ensure whether financial arrangements have been made to pay off any outstanding debts and/or to agree on the terms of sale with the company.

Therefore, it's highly recommended to buy an authentic car history check. It's better to be careful than sorry!

Yes, you can trade your financed car for a cheaper one. However, it is a lot dependent on the car's equity. The lesser the car's equity, the easier it is to trade. So, give due diligence to the financed vehicle's equity and get a better trade.