Get An Outstanding Finance Check

An outstanding finance check provides you with crucial information regarding any existing debts linked to the vehicle you’ve bought or plan to buy. This includes details of the finance agreement’s date, type, and term.

Why You Need An Outstanding Finance Check

Selling a car with outstanding finance is illegal in the UK, yet it happens frequently. If you end up owning a car with outstanding finance, it can lead to significant difficulties since the finance company retains legal ownership of the vehicle. This makes proving your right to ownership challenging.

Check Before You Buy

To avoid complications, conducting an outstanding finance check before purchasing a car is crucial. This way, you can fully understand the financial obligations associated with the vehicle.

How We Verify Outstanding Finance on a Car

MOT Reg Check offers a reliable way to determine if a car has any outstanding finances. Our service includes:

• Thorough Checks: In-depth data to aid in making a well-informed vehicle purchase.
• Reliable Data: Our checks are designed to provide complete accuracy regarding the vehicle’s history.
• Peace of Mind: Our data comes with a £30,000 guarantee to cover you in case of any data inaccuracies.
• We’re Here For You: Our team is always available to assist with any questions regarding your vehicle’s history.

Frequently Asked Questions

What does an outstanding finance check show?

An outstanding finance check reveals whether there is any debt associated with the vehicle you are considering. For those purchasing a used car, conducting this check is vital to confirm that there are no outstanding financial obligations linked to the vehicle prior to finalising the purchase. Additionally, it provides information about the finance company involved, which could be useful if you need to settle any debts or discuss your circumstances with them in the future.

Why should I bother with an outstanding finance check?

Given that one in three checks reveal a negative history unknown to potential buyers, an outstanding finance check offers reassurance by confirming that there is no remaining debt on the car. This check provides critical information before any financial transaction occurs, allowing you the chance to reconsider the purchase if it turns out the deal isn’t as favourable as it initially seemed.

What do I do if there’s finance on the vehicle?

If the report indicates outstanding finance on the vehicle, your first step should be to contact the seller and request that they clear the remaining balance before proceeding with the sale. Hesitation or refusal on their part to settle the debt is a red flag, and in such cases, it’s wise to abandon the purchase.

In the scenario where you have already bought the car and then discover there’s outstanding finance, seeking legal advice is crucial. Legal counsel can guide you on how to demonstrate that you were unaware of the vehicle’s financial encumbrances at the time of purchase, although proving this can be challenging. This is why conducting an outstanding finance check before buying is highly recommended.

If you find out about the vehicle’s associated debt, it’s prudent to step back from the deal if the owner is not ready to settle the debt. Additionally, if the owner agrees to pay off the debt, ensure you receive proof that the finance has been fully cleared before finalising the purchase.

Can I keep a car if it has outstanding finance on it?

If you unknowingly purchase a vehicle with outstanding finance, you might theoretically possess the right to retain it under the principle of ‘good title.’ This means you bought the vehicle in good faith without prior knowledge of any financial issues. However, the finance company will still seek to recover its money and will require you to address any inquiries they have regarding the situation.

Should your explanations not convince the finance company, you might be compelled to settle the outstanding debt to retain ownership of the car. This could be in addition to any loans you might have taken out to purchase the vehicle initially, potentially leading to paying for the vehicle twice. It’s advisable to contact the finance company in writing to explain your situation and ensure you keep copies of all correspondence. Seeking advice from organisations like Citizen’s Advice could also be beneficial for additional information and guidance on handling such situations.

What documents do I need to check to buy a financed vehicle?

Regardless of whether the seller is trading a car with outstanding finance or selling one they fully own, the documents you need to review as a buyer are consistent. Carefully examining these papers is crucial to ensure a smooth and trouble-free transaction. These essential documents include:

• The V5C document, which lists the current keeper’s name.
• Verification of the logbook’s authenticity, including the presence of the DVLA’s watermark.
• The vehicle’s service history provides insights into its maintenance and overall condition.
• The MOT history, detailing any past failures and advisory notes from the vehicle’s MOT tests.

Can I sell a car with outstanding finance?

Before selling a car on which you still owe finance, it’s essential to inform your lender and settle the remaining balance. This can be done either by paying off the debt directly to the lender yourself or by selling the car to a dealer who will then clear the outstanding finance and pass any excess funds to you.