Outstanding Finance Check
Check if a car has outstanding finance
Find out if a vehicle has outstanding finance
When buying a second-hand car, ensuring there is no outstanding finance before purchasing is hugely important. However, it’s easy to overlook this, putting you at risk of purchasing a vehicle that’s not necessarily paid off in full.
If a car has outstanding finance, the seller does not own it outright, meaning that they should not be selling the vehicle. In such scenarios, you may end up effectively paying for the car twice – once when you pay the seller, and again when you end up liable for the vehicle’s financing. Carrying out an outstanding finance check before you buy can help you ensure this isn’t the case.
Check a Car’s Finance Status with a Finance Check
Checking a car’s financing status is incredibly easy with a car check. Simply enter the car’s number plate details and wait a few moments, and you’ll be able to begin browsing key information about the vehicle. As part of this, you’ll also be able to check the financing history of the car, including whether there is any outstanding finance left to be paid.
What is included in a Finance Check
A car finance check can provide a wealth of information, making it an essential check before buying any second-hand car. Some of the main things that a car finance check can tell you include:
Whether the car has any finance agreements that are left to be paid off in full (and the number of outstanding finance agreements, if there are any left on the vehicle)
The type of financing agreement (e.g., Personal Contract Purchase/PCP vs Hire Purchase/HP)
The provider of the financing agreement and their contact number
The start date for the financing agreement
These are just a few of the pieces of information that a car finance check can tell you. As such, if you have been planning to purchase a second-hand vehicle, be sure to double-check that the seller genuinely owns the car before handing over any money.
Frequently asked questions
Outstanding finance checks are essential checks to run on a second-hand vehicle before buying it to ensure that there is no outstanding finance on the car. These checks help avoid this situation by providing vital information such as outstanding finance status, the number of finance agreements, agreement start date, and the financing company’s details.
Once finance has been fully paid off, there is no reason that you can’t sell your car. However, if the vehicle still has outstanding finance on it, you should not attempt to sell it, since you do not own the car in its entirety (the lender is still the legal owner of the car until your agreement has concluded and the finance is fully paid off).
If your car still has outstanding finance, you’ll likely become liable for paying the debt. Contacting an advisory body such as Citizen’s Advice may offer a useful step to help you understand the right approach for your situation
If the car seller did not genuinely have full ownership of the vehicle, the finance company might reclaim the vehicle if you are unable to resolve the outstanding finance.