Buying a secondhand vehicle might be exciting, but make sure you aren’t carrying someone else’s debts. If you accidentally purchase a vehicle that still has an existing finance agreement, you may face serious problems. This is because the seller may not have had the legal right to sell the vehicle to you, which means the car could still be legally owned by the lending company. To avoid this issue, attempt an outstanding car finance check before making any purchase.
In this guide, we’ll explain how to check if a car has finance, detail the tools available for a finance car check, and cover the steps to take if you find yourself with a car that has an outstanding finance agreement.
How to check for outstanding finance on a car?
The first step to ensuring a smooth car purchase is to check finance on a car using an online car check service. These services can provide you with detailed information about whether a car has any outstanding finance attached to it. To perform a car finance check, you’ll need the vehicle’s registration number.
Many online car check tools, including those provided by the DVLA, can give you a basic idea of a vehicle’s status. While some of this information might be available for free, obtaining a comprehensive finance car check report often requires a small fee. However, this cost is minimal compared to the potential financial burden of unknowingly buying a car that still has finances attached to it.
What information does a car finance check provide?
A comprehensive car check report can give you several essential details, including:
- Whether there is an outstanding finance agreement on the vehicle.
- The name of the finance company involved (if applicable).
The Auto Experts offer a car finance check for just £9.99, You’ll get information on the finance contract date, type, and term, along with the finance provider’s name, contact details, and agreement number. With this affordable service, customers can quickly verify if a car has any outstanding finance, ensuring they avoid any hidden debts or complications.
Can you find out how much finance is left on a car?
While a car finance check can tell you if there is outstanding finance, it typically won’t disclose the exact amount still owed. To find out how much finance is left, you need to contact the finance company directly. However, keep in mind that due to privacy laws, most finance companies are not allowed to share this information with anyone other than the person who took out the loan.
What to do if a car has outstanding finance
If your car finance check report reveals that a car has outstanding finance on it, and you have not yet purchased the vehicle, the best course of action is to contact the seller. Advise them to settle the finance agreement before proceeding with the sale. It is not advisable to purchase a car that has outstanding finance unless it is fully settled.
On the other hand, if you’ve already purchased a car and later discover it has outstanding finance, you should immediately contact the finance company. The vehicle legally belongs to them until the finance is cleared, so it’s crucial to cooperate fully with the finance provider.
Can you keep a car with outstanding finance?
If you bought a car without knowing it had outstanding finance, you might still be able to keep it under the concept of “good title.” This means you purchased the car without any knowledge of the outstanding finance and with no intent to buy it unlawfully.
However, the finance company will expect repayment or the return of the vehicle. It’s essential to work with them and provide any necessary details to resolve the situation.
Selling a car with outstanding finance
It’s illegal to sell a car with an outstanding finance agreement because the finance company legally owns the vehicle. You can only transfer ownership once the finance is settled. If you want to sell a car with outstanding finance, you’ll need to pay off the remaining balance to your lender or find a buyer willing to settle the balance.
Conclusion
When buying a used car, constantly perform an outstanding finance check to make certain you are staying in a legal or financial mess. If you find out a car has wonderful finances, walk far from the deal. Remember, buying a car under those conditions means the vendor doesn’t have the felony right to sell it, and you could be held accountable for managing what ought to technically be considered stolen goods.
By being diligent and performing a car finance check earlier than shopping for, you may shield yourself from sudden economic liabilities and ensure your new car is clearly yours.
