When buying a used car, it is crucial to check its history and ensure there is no outstanding finance on the vehicle. Failure to do so can lead to significant financial loss and legal complications. This guide explains the key steps every buyer should take.
Why Checking a Used Car's History Matters
According to the Motor Ombudsman, thousands of used car buyers each year unknowingly purchase vehicles with hidden problems, including outstanding finance, previous accident damage, or odometer tampering. Checking the car's history can reveal these issues before you commit to a purchase.
A comprehensive vehicle history check typically costs around £20 and provides information on whether the car has been stolen, written off, or has outstanding finance. The Finance and Leasing Association reports that around 1 in 10 used cars may have some form of outstanding finance attached.
How to Perform a Finance Check
To check if a car still has finance owed, you can use services like the HPI Check, Experian AutoCheck, or the government's Vehicle Information Service. These checks use the car's registration number and Vehicle Identification Number (VIN) to search against finance databases.
If the check reveals outstanding finance, the car could be repossessed by the finance company, leaving you without the vehicle and still liable for the loan. Always ensure the seller provides a clear finance settlement letter before you pay.
Other Essential Checks
In addition to finance, you should check the car's MOT history, service records, and mileage consistency. The DVSA provides a free online MOT history check for cars in the UK, showing past MOT results and any advisories.
Also, verify the vehicle's identity by checking the VIN on the dashboard and door frame matches the V5C logbook. A mismatch could indicate a stolen or cloned vehicle. The police advise that cloned vehicles are a growing problem, with organized gangs using legitimate VINs on stolen cars.
What to Do If You Find a Problem
If your checks reveal any issues, do not proceed with the purchase. Ask the seller for an explanation and evidence of resolution. For outstanding finance, the seller must clear it before you can buy the car. If the seller refuses or cannot provide proof, walk away.
According to the Citizens Advice Bureau, you have legal rights if you buy a car with hidden problems, but prevention is better than cure. Always perform these checks before handing over any money.
