How to check if a car has outstanding finance

Before purchasing a used car, it’s crucial to check whether it has any outstanding finance. Buying a vehicle that still has finance attached to it can lead to legal and financial complications. In this guide, carloans 365 explains how to check if a car has outstanding finance and what to do if it does.

1. Why is Checking for Outstanding Finance Important?

If a car still has finance owed on it, it legally belongs to the finance company, not the seller. This means that:

• The lender can repossess the vehicle if payments are not made.
• You may lose the car even if you bought it in good faith.
• You could face legal issues and financial loss.

Please ensure to always check if a vehicle has outstanding finance before buying it for these reasons above

2. How to Check if a Car Has Outstanding Finance

There are several ways to check if a car is still under a finance agreement, these methods include:

2.1 Use a Vehicle History Check Service

The easiest and most reliable way to check for outstanding finance is through a paid vehicle history check from trusted providers such as:

• HPI Check
• Experian AutoCheck
• CarVertical

These services can reveal the following details, among others:

• Whether the car has any outstanding finance.
• If it has been reported stolen.
• If it has previously been written off.

2.2 Contact the Finance Company

If you know the finance provider, you can contact them directly to confirm the car’s status. The current owner should be able to provide these details.

2.3 Ask the Seller for Proof of Full Ownership

A legitimate seller should provide proof that the finance has been fully settled, such as a settlement letter from the finance company.

3. What to Do if a Car Has Outstanding Finance

If a vehicle check shows that there is still finance on the car, follow these steps:

3.1 Do Not Buy the Car Until the Finance is Cleared

The seller must settle the finance before selling the car. If they can’t prove it has been cleared, walk away from the deal.

3.2 Report Suspicious Sellers

If a seller insists the car is clear of finance despite a report saying otherwise, it could be a scam. You should report them to the finance company or the police.

3.3 Consider a Different Vehicle

To avoid risks, look for a car that has no outstanding finance. This ensures a smooth and legal purchase process.

To summarise

Checking for outstanding finance before buying a used car is essential to avoid legal and financial troubles. By using a trusted vehicle history check, verifying with the finance company, and requesting proof from the seller, you can ensure that your purchase is safe and legitimate.

At carloans 365, we’re committed to helping you make informed car finance decisions. If you’re looking for a finance deal on a car that’s free from complications, contact us today for expert guidance!