Finance. It’s an excellent way to buy a new vehicle, and many of us take advantage of this when we purchase. However, buying on finance can also come with several caveats. And, one of the biggest is that you can’t sell the car on until you have paid off the finance in full. After all, the lender officially owns the car until you’ve paid off the loan.

Alas, this is something that many people don’t think about, and others even fraudulently sell a car knowing it’s financed. Given this thought, it’s crucial to never buy a car that still has outstanding finance for several key reasons.

Why are Financed Cars Such a Problem?

There are several reasons why you should avoid buying a car with outstanding finance. However, this may not always be as obvious as you might expect. And, unfortunately, sellers may not always be honest about the finance history of a vehicle.

Most crucially, it’s illegal to sell a financed car. After all, the vehicle is still owned by the lender until the original driver pays the finance in full. As such, if the keeper of the car sells it on, they’ve effectively sold a stolen vehicle. It was never theirs to sell. Naturally, this could also open you up to significant legal worries and concerns.

And, even if we assume the lender is understanding of the situation, the loan still needs to be paid off. This could leave you liable to pay off the finance on the car. In other words, you’ll have to pay for the car twice – leaving you thousands out of pocket, potentially.

But what if the lender isn’t understanding? In that case, they may end up reclaiming the vehicle. In this scenario, you’ll be left with no car at all for the price you paid. Ouch. Definitely not worth taking the risk.

Can I Fight My Case?

Yes – potentially. You can make a case in the courts if you’ve unknowingly purchased a financed vehicle. This is most often applicable for dealership purchases. However, proving your innocence may not always be easy, and could cost a significant amount of money in court fees in the process.

How to Check If a Car Has Finance Left

So, we’ve seen how risky it can be to buy a financed car. But how can you tell whether a vehicle is financed still or not? Well, the good news here is you don’t just have to take the seller’s word for it. Indeed, while it’s worth asking the seller first, running a car history check can allow you to double check.

A car history check, also known as an HPI check, is an incredibly simple tool that allows you to quickly see information about a car. Just enter the number plate, and you’ll quickly see details such as specs, colour, and more. In addition to these simple checks, these tools can also bring up more in-depth data, such as finance information, stolen/write-off status, MOT history, and more.

What’s even better yet: car history checks are free to run! Alternatively, if you want to do a comprehensive vehicle check before you buy, upgraded plans are incredibly affordable. As such, it’s never worth taking the risk. Always double check the car’s history before you buy, just to be sure!