Used car buyers urged to conduct history check

As part of its support for Car Crime Awareness week, HPI joins the Finance and Leasing Association (FLA) in urging used car buyers to protect themselves from buying a vehicle that’s on outstanding finance. Car Crime Awareness week serves as an annual reminder for motorists to protect themselves from becoming a victim of car crime. This comes as the FLA is working with its member organisations to encourage car buyers to be wary of the risks when buying a used car and ensure they conduct a vehicle history check

HPI warns car buyers that if they unwittingly buy a car on outstanding finance, there is a very real chance that they will lose both the car and the money they paid for it, as the finance company still own the vehicle until the finance has been settled.

“With 1 in 4 cars checked with HPI subject to an outstanding finance agreement, falling victim to finance fraud is one of the biggest threats to car buyers today,” says Nicola Johnson, Consumer Services Manager for HPI. “Analysis of hits against the HPI finance register for the first quarter of 2010, show a shift in the average age of vehicles most commonly being recorded as having finance outstanding against them.”

The latest HPI figures show that cars that are 2-3 years of age are now more frequently being reported as still having outstanding finance on them, whereas in 2009 cars that were 3-4 years of age were the most common. Interestingly, higher value cars were more commonly hitting the HPI finance register in Quarter 1 than they were in 2009.

Johnson adds, “Buyers need to be aware that some vehicle history checks do not include finance information which leaves them vulnerable to any type of finance fraud.  The provision of a seller receipt or purchaser receipt will not offer legal protection for a buyer if the car later turns out to be on outstanding finance. The hard truth is that finance companies can and will take back their asset if a loan secured against it is defaulted upon.

“So whether you are a first time buyer on a tight budget or someone looking to upgrade your current car, check the facts before you buy. If you don’t you could face the car of your dreams being repossessed by the finance house that rightly owns it. Don’t get taken in this Car Crime Awareness Week, instead do a check and beat unscrupulous sellers at their own game.”