In the UK, people were keen to buy used vehicles compared to newer ones as they were cheap and best while analysing the vehicle’s past wisely. If you are a first time used car buyer, you should know what’s now a terrifying thing in second-hand cars and how the buyers were getting scammed and losing their money. Have you ever heard of complaints like “mistakenly bought a finance owing vehicle” in the UK? Let’s discuss this in detail, along with some statistics to tackle it.
The rise of selling cars owing finance in the UK:
The foremost threatening factor in the used car market is outstanding finance (any money pending against the vehicle legally), as 6 in 10 cars registered in the UK has an active finance agreement. The UK automotive industry is now lighting up with an increased margin of car buyers.
The SMMT statistics say a vast increase of up to 3176.6% till May 2021 compared with the complete pandemic 2020. About 90% of the vehicles are bought on finance every year. If you intend to buy a used car, ensure whether the car has any pending finance agreement on it. The car flagged to have outstanding debts is not recommended to buy.
Now you have to question yourself,” How can I buy a used car that has no pending finance?” You are not alone; Car Analytics helps you in all situations while purchasing and selling used cars.
Here’s how You Can Avoid Buying a Financed Car:
Were you ever questioned, will I be put into prison if I bought a car on finance? You are not going to prison, but it is unlawful in the UK to buy or sell a car having debts pending against it in a finance company.
If you purchased unwittingly, you should pay the remaining debts as you become the vehicle’s registered keeper. The finance lender will ask for the pending money against the car or legally recover the car. They have full rights to recover because they were the vehicle’s legal owner until all the remaining money against the car is settled down. It is the reason you should check the car for pending finance against it before buying.
Huh! It’s more than imprisoning. So, better ensure whether the car that you want to buy has pending debts against it.
Save Your Pounds from Car finance scam:
Spend some bucks to save your pounds from the fraud. Here’s how you can get complete financial details of any vehicle registered in and around the UK just by knowing the VRM. Most importantly, remember that pending vehicle loans will not be there in the V5C logbook. You need to check the vehicle through our vehicle finance data provider to know the complete financial details.
Thus, an outstanding debts checker is considered one of the most essential while buying any used car. It will cost you £8.95 per check. But all the information you get through this checking service is must considerable.
Below you can see the sample of the online report you will receive from this check.
- Date when the agreement for the loan amount was successfully processed on a car.
- Agreement number and type of the loan provided by the finance company.
- How much term is still pending to complete the finance owed?
- Contact information (phone number) and name of the Finance company which lends the loan to the car.
Apart from this above information, you will get some additional bonus of crucial details like make, model, mileage, previous keepers, plate change details, VIN, and Engine number. It will help you to understand the car thoroughly before buying.
Another benefit of considering a car finance checker will also provide crucial details such as the vehicle’s written off status, whether it has been issued with a certificate of destruction or not, and much more, which is enough to judge a vehicle’s trustworthiness and money worthiness.
Still, doubts about the vehicle data reliability? No worries, you can double-check the report by contacting them by phone or reaching out to the office. And we are the 2020 Best Vehicle Data Provider in the UK.
What to do If the Car has Loan Pending?
If the car you wanted to buy has any finance pending against it, walk away from the deal. Although you want to buy the car from the seller, there are many legal standards you have to follow to prevent future risks. You need to co-operate with the finance company and legally accept that you are responsible for the remaining debts on that car. But the recommended step is to move off.
Regardless of whatever financial deals you have taken, you need to settle the debts. The most common types of financial deals are Hire Purchase, Conditional Sale, Credit sale, Contract Hire, Personal Contract Purchase, Unit Stocking, and Bill of Sale. Over 90% of car buyers in the UK prefer Personal contract purchases as per the Finance & Leasing Association (FLA) report.
Note: Any kind of finance owing is crucial when you are unknowingly buying the vehicle.
Final Words to Purchase Safely:
As already said, when you mistakenly bought the car that owes finance, then you are liable to settle the loans. Otherwise, the finance company will recover the vehicle, and they don’t need any court order to do this. You become the registered keeper of that vehicle and are legally responsible for the pending money anyway.
It is scary and unfair, but the only way to escape from it is to spend double the amount from your pocket.
Hence, if you are ready to purchase a second-hand vehicle, then Car Analytics Provides you with the cheapest and genuine report about any vehicle registered in and around the UK. Please spend some time with us to make your car purchasing deal much easier and safer than you expected.