Check out car finance, car buyers urged

Tue, 23 Feb 2010



According to car finance news, those people buying a car should check out whether it has outstanding finance, or they could risk losing both the vehicle and their money. The report was issued by the Finance and Leasing Association, who reported increasing numbers of cars sold with outstanding motor finance amounts.

This is known in the trade as ‘conversion fraud’ – whereby a seller trades a car with outstanding finance, and accounts for some four in ten of all motor fraud cases.

The head of motor finance at the FLA, Paul Harrison, reportedly commented: "We have seen conversion fraud increase, as some people look for an easy way out of financial difficulties by selling a car that does not belong to them. The FLA advises used-car buyers to always conduct a vehicle check to ensure it is free from finance. A car with outstanding finance can be illegally sold without a finance company's knowledge. If a finance company is shown on the check as having an interest in the car, be sure to contact them to check whether it is possible to go ahead with the purchase."
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