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.

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.