In the UK, selling a car with unpaid finance attached to it is illegal, but unfortunately, some sellers may still attempt to do so. Owning a car with outstanding finance can be a significant problem as you’ll have to prove that you have a legal right to own the vehicle, which can be complicated and expensive. That’s why conducting an outstanding finance check is a crucial step in the car buying process.
What does outstanding finance on a car mean?
In simple terms, Outstanding finance on a car means that there is still money owed on the vehicle to a lender, usually in the form of a car loan. This debt is tied to the car itself and must be paid off before ownership can be transferred to a new buyer.
They are committing fraud by doing this, passing the vehicle on to the following owner without disclosing it in any documents or communications.
A vehicle check is always necessary if you’re interested in buying a used car. The appropriate time to do this is prior to making the purchase. You can tell from the outcomes if the car has any outstanding loans.
Additionally, they will disclose the name of the company that the finance contract is with.
Why is it essential to perform an outstanding car finance check?
Buying a car with an outstanding loan or finance agreement can lead to many problems and financial loss. If you’re not careful, you could end up paying for someone else’s debt and facing legal troubles.
Suppose you buy a car with outstanding finance. In that case, you’ll need to deal with the finance company that is owed money, the previous owner who sold you the vehicle, and potentially seek legal advice from the Citizens Advice Bureau or a solicitor.
This can be a time-consuming and stressful process, and it’s not something you want to deal with after making a significant investment in a vehicle.
Furthermore, if you cannot resolve the outstanding finance issue, the finance company could repossess the vehicle, leaving you without a car and with a significant financial loss.
What information can be obtained from outstanding finance check?
- Detailed information on the financial status of a vehicle
- Check for outstanding finance on the car
- Provides the name of the finance company or lender
- Additional information, such as the finance agreement date, type, term, and agreement number, are included in the report.
This information is crucial for anyone looking to buy or sell a car as it helps ensure a legal and protected transaction. With our outstanding car finance checker, you’ll also have access to the finance company’s contact number, making it easy to get in touch with them if needed.
How do you check if a car has outstanding finance?
Enter your registration number in the field and click “Check Your Vehicle”. This check provides vital information, such as whether any money is owed on the vehicle, whether it has been involved in an accident, or if it has been reported stolen.
You can buy the car with total confidence if there isn’t a balance owed. You are confident that you have done all the essential checks and that there is no outstanding balance.
If you’re buying from a dealer, you can ask if they have already performed these checks, or you can do your own. Our car History Check is a reliable way to avoid purchasing a car with outstanding finance, as it thoroughly examines its history.
What NEXT if a vehicle check shows there’s still finance on the vehicle??
One of the most important steps before purchasing a vehicle is to run a free car history check and verify there is no outstanding finance.
If the vehicle report indicates that there is still money owed on the vehicle, it is crucial to take the necessary steps to clear up this issue before proceeding with the purchase.
In this case, you may need to consult with the seller or contact a legal advisor for advice on what actions need to be taken to ensure that all outstanding balances are paid off before completing the transaction.
It’s better to tackle this problem now rather than risk complications.
1.How can I check how much finance is left on the car?
To check how much finance is left on the car, enter your registration details, and you can receive a detailed report of the remaining finance on the vehicle.
2.What happens if I buy a car with outstanding finance without knowing?
If you unknowingly purchase a car with outstanding loans, you must inform the lender and take steps to resolve the situation. This may involve paying off the debt, seeking a refund from the seller, or taking legal action to prove the car’s “good title.”
3.Can I sell a car with outstanding finance?
If a car has outstanding finance, you can only sell it once the debt is paid off. The lender has a legal claim to the vehicle until the debt is fully settled, and the ownership cannot be transferred until the debt is cleared.
4.What documents do I need to check to buy a financed vehicle?
If you are buying a financed vehicle in the UK, you should ask for the following documents to ensure that everything is in order:
- V5C Registration Certificate (logbook) – This shows who the vehicle’s registered keeper is and should match the seller’s name.
- MOT Certificate – This confirms that the vehicle has a valid MOT and is roadworthy.
- Service History – This shows the maintenance and repair history of the vehicle.
- Finance Documents – If the vehicle is still under finance, you should request to see the finance agreement and payment history to ensure that everything is up-to-date.
- Car outstanding finance report – This report reveals the type of financial deal, finance company, date and term, and contact number.
It is essential to carefully review these documents to ensure that the vehicle is legitimate and free of any hidden issues.
5.How to check if a car has outstanding finance free?
While dealers may offer free HPI clearance, it’s worth paying for an online service to check for outstanding finance on the car. Free methods may need to be more reliable and detailed.