It’s illegal to sell a car in the UK if it has outstanding finance. But unfortunately, this doesn’t stop people from doing it. Owning a car that has outstanding finance on it can be a big problem. This is because you will have to prove that you have a legal right to own the vehicle. You will find this difficult when the finance company technically still own the car. It’s quite possible that the finance company will take the vehicle back if you don’t settle the outstanding finance yourself. An outstanding finance check will offer you complete peace of mind that your car actually belongs to you.
What will this check tell you?
An outstanding finance check will tell you if any money is owed on a vehicle. It will also tell you if the vehicle has ever been involved in an accident or has been stolen.
If you are considering buying a used car, then it’s always worth carrying out an outstanding finance check. The best time to do so is before you commit to the sale. The results will show you if there is outstanding finance on the car. They will also show you the name of the company the finance agreement is with.
It’s a good idea to contact the finance company and check if the previous owner has settled the finance, or whether someone still owes money on it. If there is no outstanding balance, then you can purchase the car with complete peace of mind. You know that you’ve carried out the necessary checks and that there is no outstanding finance on it.
What if the check reveals that there is still Finance on a Vehicle?
If the finance company tells you that there is still an outstanding balance on the vehicle, then you should contact the owner of the vehicle and advise them to settle the account before proceeding with the sale. And if the owner seems reluctant to admit that there is an outstanding balance on the car, or indeed settle any finance, then alarm bells should ring and you should walk away from the deal.
If you have already purchased a car and an outstanding finance check has revealed that there is in fact a balance outstanding on your car, then you will need to seek advice before contacting the finance company and prove that you are an innocent buyer who was unaware of the existing finance. This can be difficult and troublesome, so wherever possible it is advisable to perform an outstanding finance check prior to purchasing any used car.