What would happen if I fail to payback Hire Purchase settlement?

The insurance company or the lender may retrieve the car if the owner of the car has not completely paid off the loan

What does Personal Loan mean in Outstanding Finance?

Personal Loan is an amount offered by a Bank or by a society to manage the financial needs to share the cost of a car.

What do you mean by Lease Hire?

The car owner will be working in the lender company until the full finance amount is compensated by his work.

When does the finance becomes an Outstanding Finance?

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.

Check Outstanding Finance before you regret!!

Once the registration has been done to your name, you will become the legal owner of the car, hence making you responsible for the car finance dues.


Buying a car with outstanding finance

Vehicle finance is the most sought after topic in the recent years, since using liquid cash is just not a very clever option in terms of financial literacy, 90% of the new cars that are bought by buyers are purchased on finance, even the public goes for such methods to cover their vehicle expenses.

Until and unless the current car owner has paid off the remaining dues, the car would still legally belong to the finance agency from where the finance plan was taken.

Is it possible to buy a car with outstanding finance?

Yes, things like these happen. Usually, if there’s still finance dues left on a vehicle, it legally belongs to the finance company, so the current owner has no right to sell it. Selling a car with outstanding finance may lead to a lot of problems that could be faced by the new owner unless the dealers or previous keepers have remitted the finance dues; if not so, the dues could leave the new keeper with problems that were quite unexpected.

Never register your name before finding out the overall status of the car, since if you are handed a car with outstanding finance with you being the current owner, it would only be bollocks.

Normally, if you’re buying a car from a reputed car dealership agency, outstanding finance agreements can be settled at the point of purchase. Always discuss these matters beforehand with your dealer and get written acknowledgment ensuring that they’ll remit the outstanding amount.

Is there a way to find out if there is any finance dues left on a car?

Performing a full car history check can let you know a lot of important details about the car, along with it; you will also get to know the outstanding finance that needs to be paid off.
Taking a full car history check can show you if your used car has outstanding finance and many other important checks that include whether it has been written-off or not, stolen or not, number of previous keepers, miles it has run, and more!

Car Dealers show a car history report while you go to purchase one, but it is always best to do your own research before accepting the report from the dealer.

What steps should I take if I find out finance due is still left on a car I want to buy?

If you have bought a car with outstanding finance then first, ask the seller to handle the dues before you agree to complete the purchase, if they can’t do it immediately then do not register your name without a written acknowledgment from the seller that they will remit as promised to the finance agency.

This will give you an upper hand in dealing with expenses that are not yours to handle. Also, don’t forget to ask for a clearance letter, once your dealer has finished off the dues.

Research well and ask questions. Nothing is quite lethal when compared to a person who is well informed and who is prepared to face any situation.

Check Outstanding Finance On Car ?!

5 reasons why you shouldn't buy a car on outstanding finance

Shouldn’t you know if it is possible to sell a car when it carries outstanding finance? The government should have looked into this matter, because it’s really been prevalent regarding outstanding finance.

Usually dealers can’t buy everything with cold hard cash, they have to go for credit and that is why most vehicles have unpaid credit towards the finance companies that they have been assigned to.

It is common practice to buy vehicles on credit and then sell the vehicles without settling the finance first. Sometimes the dealers do settle using the asking price money, but this is not the case all the time.

Some note worthy points:
1. Legal issues proceeding to court can drag you into messy court hours and drain your peace of mind and time.
2. Supposing the settlement figure to the finance company is higher than asking price, you are burning quids faster than you spend.
3. Suing your dealer after the damage has been done could be possible, if the dealer didn’t flee away already, prevention is always better.
4. If your vendor promises to remit the settlement figure after sale completion, the registration ultimately falls on your name, holding you responsible.
5. If didn’t buy an Outstanding Finance Check and didn’t verify the financial status of the car yourself.

Drawbacks of not following through on Outstanding Finance

Supposing you buy a vehicle that hasn’t been paid for yet, it would still belong to the finance company that’s responsible for it. The registered keeper will be expected to hand over the payments on a monthly basis,
And when the registration is handed over to you, you will be ultimately held liable for whatever amount is outstanding, which could lead to thousands of pounds.

What you should do
At CarDotCheck you can check if a car is on finance and get to know important details such as the agreement number and which company it is associated with, along with the finance record count. 9 quids compared to thousands of pounds doesn't sound like much when you think about it.