How Important Is It To Check If A Car Is On Finance?

When purchasing a used vehicle, there are a number of factors to consider, like the motor's age, usage, and any repair, to mention a few. After all, you want to ensure that your investment will serve you well and will not break down after several months.

Another thing to look for when buying a second-hand automobile is whether or not it has any existing loan arrangements. If they do, and you acquire the vehicle without realising it, the car may be seized, so here's how to verify before you sign.

The issue is becoming worse.

As per data from an online utilised car finance check, overdue financing warnings on used automobiles have increased by 16% year over year. It's unlawful to sell a car with an ongoing loan arrangement, and these figures indicate that it's something that drivers should be aware of when purchasing a second-hand vehicle.

According to the data, at least one problem was discovered in 48% of auto inspections in January. Some weren't particularly alarming - they might have been as simple as a previous lawful number plate change. Some concerns, however, were more significant, such as automobiles that had been certified wrecked earlier. If any important issues arose while considering purchasing a second-hand automobile, you should not proceed with the purchase.

Check out articles on tax expenses and used car inspections to see what else you should look for when purchasing.

Recommended for you: Here’s Why Should You Check Finance Pending On A Vehicle Before Buying

How to Perform an outstanding finance check?

Before you acquire any used autos, visit a site like HPI to verify whether there is an outstanding credit arrangement on the vehicle. If your search reveals that the automobile has outstanding finance, you should contact the firm identified as the lender. They must be able to tell you whether or not the financial arrangement has been paid off, and it's a great idea to have them give you a statement verifying this.

If the finance arrangement hasn't been finalised, you should insist on the vendor paying it off before proceeding with the transaction.

Suppose you've previously purchased a used vehicle and didn't check it out at the time, but afterwards discovered it had outstanding finance. In that case, you should get legal counsel from a professional source. If the loan company has a claim on the automobile, they may decide to seize possession of it. You'd have to show that you were an innocent buyer who was unaware of the loan agreement when you bought the automobile, but this may be not easy to do, and the finance company may not believe you.

As a result, it's advisable to avoid situations like these by obtaining a vehicle inspection before purchasing any vehicle.

And it's important not to fall for any attractive ads or reports that have nil faults. Get referred to a reputed car site like Car Analytics so you can get a hassle-free service.


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