Outstanding finance occurs when the previous owner failed to pay the car debts but attempts to sell the financed car. In such situations for buyers, the outstanding finance check will give you the idea of if the vehicle is still owed to the finance company. It is illegal to sell the financed car without informing the concerned buyer. Few buyers are ready to pay for cars even after knowing it has still in debt to the finance company. In this blog, get to know about,
- How the vehicle finance check must for used car buyers?
- How to sell a car with finance?
- What are the outcomes of not checking the car finance?
Why is it necessary to check outstanding finance on the car?
If the car has still unpaid debts, then the vehicle belongs to the finance company. If you become the owner of such a debt car, even you bought it from a decent dealer or fair amount; you are responsible for settling the finance amounts. There are two cases,
If the buyer knows it is a financed car and is okay with it, and the buyer pays for the financed car unwittingly, he has to settle the debt amount before getting the car home. Or else you have to continue the instalment payments as per the financial agreements.
Thus, a vehicle finance check is necessary for car buyers who commit to buying the vehicle without knowing its complete history. Thus, you are buying the dealer’s vehicle discuss beforehand, directly questioning them about vehicle history. If you are not convinced to pay for the financed car, quit the deal.
Is it possible to sell the financed car?
As already said, it is illegal to sell a vehicle with outstanding finance on it. If there is no way and you are in a situation to sell the debt vehicle, discuss it with the finance company first.
If you try to sell the car where you purchased it with a personal loan, it is okay to pay the full payment, and there are no mileage restrictions on this plan. So, it is easy to sell the car with a personal loan as you are considering the vehicle’s legal owner.
In case of having PCP or Hire Purchase financial deals, you can’t sell as you are not the legal owner of the car till the financed is paid. So, better decide whether you will buy the financed car and precede the financial procedures according to the company.
But don’t jump directly. Look at the vehicle model & proceed with the payment process.
Consequences of not checking the financed car:
Few buyers will get into this trouble where they don’t mind checking the vehicle has outstanding finance on it. So they have to face the ramifications like,
- You can’t enjoy car ownership till the debt settles.
- Have to pay the debt amount without fail. If not, the vehicle can seize fro you by the finance company.
- The worst part is the debt vehicle has the possibilities of having potential risks.
Through vehicle finance check online, you can avert this trouble by analyzing the complete history.
Is it possible to outstanding finance check free?
Always keep in mind; there is no free finance check availability online. So get into words of “free” when the dealer tries to inspect the vehicle before you pay for one. The UK vehicle check online will provide the car history details for free that; you can possibly get to know the car is worth to pay for but to know the potential issues, you are required to spend few bucks. You can prefer Car Analytics, where it gives a reliable check at a user-friendly cost.
Financed car or any other potential issues, the buyer is going to suffer if they don’t check beforehand. So better take the car check beforehand.