How to check if a used car has finance
Buying a used car can be tricky, luckily, at Green Flag, we’re here to help you sidestep those challenges and buy the right car for you. One of the most common questions we get is about car finance, specifically, how do you know if the used car you’re looking to buy has any outstanding finance against it. A 2017 study by BusinessInsider showed that 8 out of 10 cars in the UK were bought using car financing, so it’s important that you do your checks before buying.
Why shouldn’t I buy a car with outstanding finance?
If you buy a car with outstanding finance on it, you could stand to lose it - even if you’ve paid for it outright. This is because the car is technically still owned by the finance company until the fiance is completely paid off. If there is still finance on the car, the seller should not be trying to sell it.
The seller has told me that there’s no more finance on the car, what do I do?
Check.
We always advise trusting the vehicle check rather than the word of the seller.
I really want to buy this vehicle but it has outstanding finance
If you have your heart set on a buying a used car but it has finance on it, there are steps you can take. However, our standpoint is that you walk away from any used car with outstanding finance.
- Contact the finance company and let them know that you want to buy the vehicle.
- The finance company will then give you the ‘settlement figure’ for the finance deal and the steps you need to take to clear this (Usually this means the owner needs to pay it off)
- Get confirmation from the finance company that the settlement figure has been paid and that the vehicle is free from finance.
- Run another vehicle check to make sure that no finance is flagged on the vehicle.
- Don’t purchase the vehicle until it passes the vehicle check.
Why run the risk when buying a used car? At Green Flag, our comprehensive vehicle check will tell you if your car has a hidden history. Get yours today.
