Finance turns into outstanding finance when the
previous vehicle owner still has the finance to pay for the vehicle and still
sells the car. In that case, the seller hides the financial information from the
buyer to sell the vehicle. This is considered as a fraudulent activity when the
financial information is not informed to the buyer.
Free Advice:
Before buying a vehicle check if a car is on finance.
Types of outstanding Finance
Hire Purchase
The borrower should completely repay the loan from the
lender to own the vehicle completely until that vehicle is completely owned by
the lender. If we buy a vehicle with a hire purchase finance option the lender
has all the rights to reclaim the vehicle.
Conditional Sale
A conditional sale agreement states that the full title of the asset is considered as the property of the finance company unless the certain
condition of the agreement is met. We have to make all the payments on time.
The agreement also includes conditions like covering insurance and vehicle
maintenance. The finance completely owns the full title of an asset if the
agreement is not settled properly.
An outstanding finance check is more than enough to know
whether the vehicle still has outstanding finance or not.
Credit Sale
It is more like other credit agreements, in this type of
outstanding finance the buyer becomes the owner of the vehicle from the
beginning of the agreement date. If we find the vehicle we intend to buy has
this type of finance, it is mandatorily advised to consult with the seller for
the clarification.
Unit Stocking
This is a common type of finance agreement used by
vehicle dealers across the country which helps them to fund the vehicle on
their dealer forecourt. If we intend to buy a vehicle from a dealer, take a dvla vehicle check report online. Take the report, reach the dealer’s office
and check the liability and get a written confirmation from the dealer, so that
they will clear the finance on the vehicle we intend to buy.
Lease or contract
hire
The buyer will get complete ownership when the finance
is settled fully, until that leasing or hiring company will hold the ownership
of the vehicle
Personal Contract
Purchase
This type of finance also has some conditions to be
satisfied, until that lender owns the vehicle. Usually, the final payment is
lump sum money which can also be guaranteed by the lender. Check outstanding finance on car to not stuck in an unwanted problematic situation.
Personal Loan
The lender has no right to claim or show interest in the
vehicle but lender has registered the existence of a personal loan as part of
the Governments Responsible Lending drive. If we find the vehicle we intend to
buy has this type of finance, it is advised to clarify with the vehicle seller
as well as the lender.
How to find outstanding finance and What
to do if there is outstanding finance on car?
We can check vehicle details online easily in some of the
web portals like CarDotCheck, HPI, etc,.
If we find outstanding finance before buying the car, we
should check with the finance companies whether the finance has been settled
down or not. If not settled, we should ask the seller to settle the finance
account before selling it to us or else walk away.
If we discover finance after buying the vehicle, it is
very difficult to prove that we are the legal rights to own the vehicle. We
have to prove the finance company that we are an innocent buyer if the convincing part becomes unsuccessful then the finance company will take back the
vehicle.
A free vehicle check history report could reveal us only a small amount of information. Buying a complete report could help us in a lot of ways. It not only reveals outstanding finance details, but it also reveals written off details, stolen history and much more.
