Finance Checks on Motor Vehicles: A Buyer's Guide

Buying a motor vehicle, whether new or used, is a significant investment. While assessing the mechanical condition is crucial, verifying its financial history is equally vital. A finance check helps you uncover any outstanding financial obligations tied to the vehicle, protecting you from inheriting someone else's debt. Why is a finance check important? If a vehicle is subject to a loan or hire purchase agreement and the previous owner hasn't fully repaid it, the lender technically still owns the vehicle. Buying a car with outstanding finance means the lender can repossess it, even if you weren't aware of the debt. This leaves you without a car and potentially out of pocket for the purchase price. What does a finance check reveal? These checks search national databases to identify: * **Outstanding Finance:** Details of any loans, hire purchase agreements, or other financial arrangements secured against the vehicle. * **Written-Off Status:** Whether the vehicle has been declared a total loss by an insurance company due to damage. * **Stolen Status:** Checks against national stolen vehicle registers. * **Vehicle Identification Number (VIN) Discrepancies:** Flags any inconsistencies with the VIN, which could indicate tampering or illegal cloning. * **Mileage Discrepancies:** Highlights significant discrepancies in recorded mileage, which could suggest odometer fraud. How do you perform a finance check? Several online services provide finance checks. You'll typically need the vehicle's registration number (license plate) and sometimes the VIN. Be wary of free services, as they might not offer comprehensive data. Reputable providers charge a fee but offer more thorough and reliable information. Some well-known providers include Experian AutoCheck, CARFAX, and VINCheckPro. Interpreting the Results: A clean report indicates no outstanding finance or other adverse history. However, a report showing outstanding finance requires further investigation. You should immediately contact the seller and demand they clear the debt before you proceed with the purchase. If they refuse, walk away from the deal. Do not rely on verbal assurances; insist on written proof of debt clearance from the finance company. Beyond the Finance Check: While a finance check is essential, it's not a substitute for a thorough inspection. Get a pre-purchase inspection by a qualified mechanic to assess the vehicle's mechanical condition. This can reveal potential problems that a finance check won't uncover. In conclusion, conducting a finance check is a small investment that can save you from significant financial loss and legal complications when buying a motor vehicle. Protect yourself by knowing the vehicle's complete financial history before you commit to the purchase.