Car Outstanding Finance Check
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What is Outstanding Finance on a Car?
Outstanding finance on a car refers to any loans or financing agreements that are still outstanding on a vehicle. Essentially, it means that the current owner of the car has not yet fully paid off the amount owed on the car to the finance company. If a vehicle has outstanding finance, the legal owner is typically the finance company, and they can repossess the vehicle even if the current owner purchased it in good faith.
This is why it is important to perform a car outstanding finance check before purchasing a vehicle, to avoid any potential legal and financial issues in the future.
What Happens if I bought a Car with Outstanding Finance?
Should I bother About a Car with Outstanding Finance?
If you’re considering purchasing a car with outstanding finance, it’s important to weigh the risks and potential benefits before making a decision. While purchasing a car with outstanding finance can sometimes result in a good deal, it’s essential to understand the potential risks involved.
If the previous owner defaults on their finance payments, the finance company can repossess the car, even if you have already paid for it. This could result in you losing the car and the money you paid for it. Additionally, it can impact your credit score and future ability to obtain financing.
On the other hand, if you’re able to negotiate with the finance company and obtain a settlement figure for the outstanding finance, you may be able to purchase the car for a lower price than its market value.
Ultimately, it’s essential to perform a car outstanding finance check before purchasing any vehicle to ensure that there is no outstanding finance on the car. By doing so, you can avoid potential legal and financial issues in the future and make an informed decision about whether or not to purchase the vehicle.
How to check if a car is on finance?
Enter the registration number in the form provided and click on “check my vehicle“. Afterwards, you’ll be asked to pay a small fee to unlock the vehicle’s financial status. The premium report will show any outstanding financial status, highlighting crucial details about the lender, financial agreement, and contact number if any. Check it now with our check tool!
Frequently Asked Questions (FAQs)
What documents should I have to buy a financed vehicle?
If you’re planning to purchase a financed vehicle, there are some important documents you should obtain from the seller to ensure a smooth and legally-binding transaction. These documents include:
The vehicle registration document (V5C) – This document confirms the current registered keeper of the vehicle and provides details of the car such as its make, model, and current tax status.
The original purchase agreement – This document outlines the terms and conditions of the original financing agreement, including the amount borrowed, the interest rate, and the repayment period.
The outstanding finance statement – This document confirms the amount of finance still outstanding on the vehicle, and that it will be settled in full upon completion of the sale.
A receipt for any deposit paid – If you’ve paid a deposit, make sure to obtain a receipt for it as proof of payment.
Should I bother about a car with outstanding finance?
If you are considering purchasing a car with outstanding finance, it is important to take certain precautions to make an informed decision. Although purchasing a car with outstanding finance can sometimes be a good deal, it can also come with risks.
One major risk is that the finance company can repossess the car if the previous owner defaults on their finance payments, even if you have already paid for the car. This could lead to you losing the car and the money you paid for it. Additionally, it can negatively impact your credit score and your ability to obtain financing in the future.
What are the details you can get from our outstanding finance report?
Our outstanding finance report provides you with comprehensive and accurate information about any outstanding finance or loans on a vehicle. The report includes the following details:
Confirmation of whether or not there is outstanding finance on the vehicle
The name of the finance company
The settlement figure – the amount required to pay off the finance and own the vehicle outright
The type of finance agreement in place (e.g. Hire Purchase, Personal Contract Purchase)
The date the finance agreement was taken out
The number of outstanding payments and the monthly payment amount
Whether the vehicle has been reported as stolen, written off or has outstanding mileage discrepancies
Other important information about the vehicle’s history, such as previous owners and MOT history
Can I sell a car with outstanding finance?
If you have outstanding finance on your car, you technically do not own the vehicle outright until you have paid off the finance in full. This means that you cannot sell the car without the permission of the finance company.
However, it is possible to sell a car with outstanding finance through a process called a “settlement sale.” This involves paying off the outstanding finance balance in full, either with your own funds or with the proceeds of the sale, and then transferring ownership of the vehicle to the buyer.
It is important to obtain written consent from the finance company before proceeding with a settlement sale, as failure to do so could result in legal and financial consequences. It is also recommended to perform a car outstanding finance check before selling the vehicle to ensure that there is no outstanding finance or loan on the car.
