When buying a used car in the UK, it’s important to do an outstanding finance check. This means finding out if the previous owner still owes money to the vehicle and, therefore, may not have the legal right to sell it.
If they do owe money and you go ahead with the purchase, you could end up losing the car to repossession. An outstanding finance check can easily be done online by entering the registration number of the vehicle, giving you peace of mind before making such a big purchase.
Don’t skip this important step – double-check to ensure no hidden debt is attached to your used car.
How to check if a car has outstanding finance?
When buying or selling a car, it’s important to check if the vehicle has any hidden car finance that needs to be addressed. The process is relatively straightforward and can save you from costly surprises down the road.
With our premium report, simply enter the vehicle’s reg number and click the search button to check if the vehicle has outstanding finance on it.
If yes, then contact the finance company listed in those documents to see if there is an outstanding balance on the vehicle.
If the previous owner had taken outstanding loan, they might still need to finish paying off the car before trying to sell it. It’s also possible for hidden car finance to occur when a vehicle is sold without disclosing a previous loan agreement.
The new owner may be liable for paying off the remaining balance in these cases and loses their hard-earned money.
What does outstanding finance check report reveals?
In 1 out of 3 of our vehicle history checks, hidden vehicle information is found?
To check if the vehicle has outstanding finance, simply enter your vehicle’s VRM and click on the search. By upgrading to our comprehensive £9.99 vehicle report reveals the following fields,
- Finance company
- Date of Agreement
- Agreement type
- Agreement Date
- Agreement Term
- Agreement Number
- Contact number
Based on your checks, you know there are no outstanding finance debts.
What happens if you buy a car with outstanding finance?
Car finance gives you the opportunity to budget your expenses and choose your car, as well as to pay back the entire cost of the vehicle in manageable monthly installments. It also helps you stay on top of your finances.
However, what happens if you accidentally end up buying a car with outstanding finance? And what exactly does it mean to purchase a car with outstanding financing?
We explain what outstanding finance on a car is, what your rights are, and how to find out whether a car is financed before you buy it in case you’ve already purchased a car with outstanding loan and want to know what to do next or want to avoid doing this in the future.
Purchasing a car with outstanding finance from a dealer
You may occasionally discover that the car you’re purchasing from a dealer has outstanding financing. A good title will still apply to you in this situation even if the dealer should be aware of any outstanding debt on the vehicle.
At the time of sale, the dealer should settle any outstanding debts if you want to purchase a car with financing. It should be discussed in detail and confirmed in writing before any money is transferred.
Can I sell a car with outstanding finance?
If you are trying to sell a car with outstanding finance, the short answer is yes, you can. However, it’s important to make sure that you complete the necessary financial arrangements before selling the vehicle.
In the UK market, there is often an assumption that the car finance has been paid off and transferred to the new owner, so it’s important to be upfront about any outstanding payments. This may mean paying off the remaining balance before selling, or making arrangements for the new owner to take over the final payments.
In either case, transparency about financial arrangements can smooth out potential hiccups in the sale and ensure everyone involved is on the same page. Ultimately, running an outstanding car finance check can save your money and give you a peace of mind.