Did you know that nearly 90% of new car deals in the UK are made using finance? This means that 9/10 cars you see in your local area have outstanding loans. This is not an issue. If your seller doesn’t tell you upfront about the car they want to transfer onto you, it could be a problem.
What is outstanding car finance?
When the car’s previous owner sells it, but still has finance to pay, outstanding car finance is possible. They are committing fraud by not telling the truth that there is still finance to be paid.
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Finance: Buying a Car
There are a few options if you find yourself in a situation where your car is still owing to the lender.
If you were unaware that the vehicle was yours, you could argue your case to the lender. It could be possible that the seller mis-sold your vehicle depending on how you acquired it.
A quick car check will reveal all of this information and more about the car you are considering buying. The seller will have communicated with you regarding your financial situation as well as any major accidents or thefts.
You’ll be able to save not only time and stress, but also money over the long-term by performing a thorough finance check.
With this in mind, what other top tips can we offer to you to avoid purchasing a car with exceptional finance?
These are our top tips to avoid buying a used car with outstanding finance
As we have already said, the best option is to do a vehicle registration check. It is simple and quick and will reveal if the vehicle you are interested in buying has outstanding finance.
A comprehensive car check will provide you with a detailed report. This includes details about your vehicle’s history, MOT history, and mileage. These are areas where unscrupulous sellers will go to great lengths in hiding vital information to make their vehicle appear to be something it isn’t.
An auto registration check will give you peace of mind and save you stress if you are suddenly hit with late payments. You may have hundreds, or even thousands, of outstanding debts that need to be settled.
If you discover outstanding finance before purchasing the car, you can ask the owner to pay it off. It is much better to do this before you make the final purchase.
Can You Spot a Car with Outstanding Finance?
Good question! The short answer is yes! You must perform a car inspection.
It’s silly to take on the debt of someone else when you can check online if a motor’s finance is free.
You’ll have immediate access to an accurate report and be highlighted for any vehicle finance still due to repay.
Although you might expect sellers to be honest with you and confirm that the car is not in default of any debts, it’s not always true. You are responsible for the vehicle once you have registered it as yours.
Why would you want someone else to pay for your finances? A simple online car check can help you avoid the horror of being mis-sold or mis-informed. If you want to avoid purchasing a car with outstanding financing, you should have more information.