Vehicles with outstanding finance
When someone buys a vehicle on hire purchase (and some other forms of credit), they don't fully own it until they've paid off the money. This means they can't legally sell the vehicle - but that doesn't stop people trying.
AutoCheck can tell you whether a car has outstanding finance recorded against it, as well as the agreement number and the name and contact details of the finance company that the agreement is with.
If it is outstanding, ask the vendor to obtain a settlement figure from the finance company (they will not supply this to you as it is considered to be personal data and is covered by Data Protection).
Half of new cars registered have finance secured against them - and one in four cars we check still has outstanding finance.
The finance company should automatically contact Experian to remove the data from the vehicle.
This doesn't necessarily mean you shouldn't buy it, but there are steps you should take to make sure you don't lose out.
Why it's risky to buy cars with outstanding finance
If you buy a vehicle with an outstanding loan or hire purchase agreement, the finance company retains a legal interest in it until the money is repaid in full.
The company will try to track down the vehicle and repossess it, unless you prove that you were what's called an innocent purchaser. Proving this can be an extremely difficult, lengthy and stressful process.