Outstanding Finance Check

Buying a used car can be an overwhelming experience, especially when you discover it has outstanding finance. It's a situation that can quickly turn a dream car into a nightmare. That's where Motorscan comes in.

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Outstanding Finance Check

What is a Outstanding Finance Check?

We understand how crucial it is to check for outstanding finance when purchasing a second-hand car. Our premium car check offers this essential service. We also provide a wealth of informative articles covering the subject in detail, from understanding the importance of checking for outstanding finance to what financial information you can expect to obtain. With our expert guides and articles, Motorscan has you covered.

Latest guides about Outstanding Finance Check

Outstanding Finance Check

An outstanding finance check is an important step in the process of buying a used car. This check is designed to determine whether the vehicle has any outstanding loans or financial obligations that must be paid off before the car can be legally sold to a new owner.

The check typically involves a search of various databases and records to identify any outstanding finance agreements or liens on the vehicle. If there is outstanding finance, the buyer must either negotiate with the seller to pay off the debt before the sale or walk away from the transaction.

An outstanding finance check can help protect buyers from unknowingly purchasing a car with outstanding financial obligations, which could result in repossession or legal issues down the road.

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Frequently asked questions about Outstanding Finance Check

How do I check if a car is clear of finance?

To check if a car is clear of finance, you can take the following steps:

Check the car’s documentation: Look at the car’s logbook (V5C) and service history documents to see if there are any outstanding finance agreements on the vehicle. The logbook should list any outstanding finance or loans, which will be marked as “finance outstanding” or “ownership change.”

Check with the finance company: If you are still unsure, you can contact the finance company that issued the loan on the vehicle. You will need the car’s registration number, make, and model, as well as the vehicle’s VIN number. The finance company should be able to tell you whether there is still money owed on the vehicle or if the loan has been paid off.

Use an online vehicle checking service: There are a number of online services that offer vehicle checks, including Motorscan. This service can provide a comprehensive report on the vehicle’s history, including any outstanding finance agreements.

It’s important to check if a car has outstanding finance before you buy it, as it could mean that the vehicle is not legally yours, and the finance company may repossess it.

Is it a criminal Offence to sell a car with outstanding finance?

Yes, it is a criminal offense to sell a car with outstanding finance without notifying the buyer. This is because the finance company still owns the vehicle until the loan is fully repaid, and selling the car without settling the finance agreement is considered fraud.

Under the Fraud Act 2006, it is illegal to sell a car without disclosing the outstanding finance to the buyer. If you knowingly sell a car with outstanding finance, you could face criminal charges, which may result in a fine or imprisonment.

Therefore, it’s important to ensure that any finance agreements on a vehicle are fully settled before selling it to avoid any legal complications. Additionally, buyers should also perform their due diligence and check the car’s history to ensure that there is no outstanding finance before purchasing it.

What should I do if I discover outstanding finance on a car I've bought?

If you discover outstanding finance on a car you’ve bought, you should contact the finance company that issued the loan and inform them of the situation. You may need to settle the finance agreement or negotiate a payment plan with the finance company to avoid legal complications.

Can I sell a car with outstanding finance?

You can sell a car with outstanding finance, but you will need to settle the finance agreement before doing so. Alternatively, you can negotiate with the buyer and transfer the finance agreement to them.

Published April 20, 2023 by Zoe Hicks | Last reviewed June 28, 2024 by Jonathan McDonald