Outstanding finance top risk for used car buyers
Channel 5’s Cowboy Traders has put the spotlight on the risks of buying used cars, highlighting that outstanding finance is a key concern for buyers and sellers alike. Cowboy Traders presenter, Dom Littlewood, urged used car buyers to conduct an HPI Check to help them avoid the pitfalls of buying a vehicle with a dodgy past.
Cowboy Traders focused on a Scottish dealer who was buying vehicles still on outstanding finance and telling the customers he bought them from that he would pay off the loan, but didn’t. One couple, who sold the car to him in good faith, found out that they still owe the loan company £4,500 and another family, in a similar situation, owed £15,000 to the loan company. Although the dealer later lost his licence, he went on trade as a private seller, using his son to get rid of the cars he had online.
“Most dealers operate best practice and do a great job in helping used car buyers find good quality vehicles that match their budget and their needs, but there are a few that let the industry down,” explains Daniel Burgess, Managing Director for HPI.
“In the cases highlighted by Dom Littlewood, consumers had sold on their cars in agreement that the outstanding loan would be paid off by the dealer who bought them. However, in this case the unscrupulous dealer didn’t pay off the loan, leaving them to foot the bill on a vehicle they didn’t own any more. Worryingly he could have gone on to sell those cars to other innocent buyers. If you buy a car which later turns out to have finance owing against it, you could well be liable. That means you could stand to lose both the vehicle and the money you paid for it, if the finance company, which is the legal owner, wants it back.
“As recommended by Dom Littlewood, the HPI Check offers vital protection from the risk of buying a car on finance. 1 in 4 vehicles we check still have finance owing on them confirming just how real the risk is for buyers. The HPI Check also provides comprehensive cover against other types of fraud. For just a small fee, consumers can get true peace of mind that they’re not buying a car with a costly hidden history.”
The HPI Check includes a mileage check against the National Mileage Register as standard, now with over 150 million mileage readings. HPI also confirms whether a vehicle is currently recorded as stolen with the police, has outstanding finance against it or has been written-off, making it the best way for consumers to protect themselves from fraudsters looking to make a fast profit. In addition, the HPI Check offers a £40,000 Guarantee in the event of the information it provides being inaccurate, offering added financial peace of mind to used car buyers.
