How to avoid buying a car with outstanding finance?

Buying a new car on finance is very common throughout the world. In the UK alone, nearly 90% of new car deals are made on some kind of finance, which means most of the vehicles we see on the road have an outstanding loan on them. The problem is whether the seller is honest to tell you about the debts or do buyer knows how to avoid purchasing the used car with finance on it.

What happens if you buy a car on finance?

If you’ve fallen into the pitfall of buying a used car with a balance due to the lender, you may find yourself in a difficult situation. The financial firm that issued the debts may approach you if they still owe money on the vehicle.

  • You can argue against paying the debts in these instances by saying that you acquired the vehicle with great intent and had no information that it was in debt. It’s known as an ‘excellent title’ in this case. Rather than you making your case to the financing firm, it will be up to them to establish that you do not have a “good title.”
  • It consumes your time and energy in responding to emails or phone calls from the financing business regarding the vehicle, which may eat up important stuff and get you in danger of paying someone else’s outstanding debt. Financiers will not easily forgive unpaid payment instalments.
  • Purchased a used car from private sale, but you found late about the seller intentionally sold you the car with unpaid finance; it ends up to difficult to contact them.
  • Conversely, if the seller had acquired it from a previous seller who had sold it to them dishonestly, the seller may not have known the outstanding loan.

These circumstances can create a lot of stress and effort spent resolving issues that were never your fault.

Also Read: Four scams you need to know before buying a used car

Tips to avoid buying a used car with outstanding finance:

  • Running the vehicle registration plate through our outstanding finance check is the quickest, safest, and most efficient way to find out about any outstanding financing on the car.
  • It will provide you with a detailed report on the vehicle’s history, including whether or not it has any outstanding debt.
  • Outstanding vehicle checks are quick and economical, ensuring that you know all there is to know about the car you want to buy, saving you a lot of money over the long term.
  • There is still money owed on a car, which may be hundreds of pounds. So, don’t give thought to buy if you are unsure about the repayments.

Other aspects of the car’s history, such as MOT history, number plate history, keeper history, and mileage history, will be broken down in our comprehensive car check report.
Related: Best used luxury car to buy in 2021

How can you spot out if a car has outstanding finance?

When you decide to purchase a car, checking if the car has finance on it is an important factor to avoid financial and legal issues. So, always verify if a motor is finance-free.

The explanation for why and how to check outstanding vehicle finance is that to assists you to save money by giving you an accurate report. People must verify if a car is free of debt, which is critical if they are changing cars with outstanding debt. The registered owner or genuine owner of a car is accountable for any outstanding amount that must be paid off. As a result, an outstanding finance on a car simply refers to the amount of money due on a vehicle.

The report from Car Analytics is essential for the used car buyers, it can be either citizens or dealers, may check car data online to obtain numerous car history records in order to avoid difficulties.

Can you check if a car is on finance for free?

Checking for car outstanding finance is one thing, there are several companies providing premium registration checks and few of the vehicle details can directly get it from gov.uk.

But, to identify the unsettled debts on a vehicle is possible only through online premium checks. If you’re interested to buying a used car, just give input to disclose the history with registration number or Vehicle Identification Number.

There is no free finance check online, so don’t bluntly believe if anyone says about the report for free. Proceed with the research as car data check providers are emerging in this field. So, know who offers the services that favour your budget.

Recommended Reading: Who has the cheapest HPI Check In the UK?

However, there are companies that tell you vehicle registration checks details for free of cost, but it is quite hard to trace the pending debts in free reports.

These free government-provided reg checks will reveal the vehicle’s registration information, expiration date, make, model, and information of its CTP insurer, as well as the policy’s expiration date.

However, all these would be basic points about the car; for a more detailed view, a paid reg check will be a better choice when your search is about the finance check of the vehicle.