Outstanding car finance risk for car buyers

Wed, 21 May 2008



Used car buyers who unwittingly purchase a vehicle with outstanding car finance could face losing the vehicle and the money paid. A study by vehicle checking company HPI found that 30 out of every 100 cars checked are subject to an outstanding finance agreement .

Customers buying a car with an outstanding car finance policy may find the vehicle repossessed . The Director of HPI, Nick Lindsay, reportedly commented: "A vehicle on hire purchase or a lease agreement still technically belongs to the lender, and if that loan remains unpaid when an unwary consumer buys the car from the person who took out the loan, the lender has every right to take ownership of it. This obviously leaves the buyer substantially out of pocket."

Lindsay reportedly continued: "At a time when the credit-crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle . Checking with us first will help buyers avoid this all too common problem, which is sadly on the increase."

Further problems suck as changed plates, clocked mileage, and stolen vehicles are further risks that used car buyers face.
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