Dangers of buying a car that is still under finance
Buying a used car can be an exciting undertaking, but it's important to be aware of the risks that come with it., particularly if you are inexperienced or unfamiliar with car buying. One of the most significant risks when buying a used car in Ireland is purchasing a car that still has unpaid finance. Here are just some of the dangers of buying a used car with outstanding finance, and the reasons a Car History Check is so essential.
What is outstanding finance, and why is it a problem?
Outstanding finance refers to money that is still owed on a car that hasn't been fully paid off. If a previous owner has taken out a loan or finance agreement to purchase the car, it will have an outstanding liability until the loan is fully repaid. If the finance isn't cleared before the car is sold, the new owner could be liable for paying off the remaining balance, even if they had no idea the finance was outstanding.
This situation can be a nightmare for anyone who buys a used car with on which the previous owner still owes money. Imagine buying a car that you thought was yours, only to find out that you now owe thousands of Euro to a bank or finance company. If you can't pay off the outstanding finance, the creditor may repossess the car, leaving you with no car and no money.
Why is a car history check so essential in This Case?
A Car History Check is a comprehensive report that details the history of a vehicle, including details of any loans raised against it which may still be outstanding. When you're considering buying a used car, this check is a crucial step that you can't afford to skip in assessing the cars value and, most importantly, it’s safety. It will give you a clear picture of the car's history, so you can make an informed decision about whether or not it is a safe investment. Furthermore, a Car History Check will also tell you if the car has been stolen or written off, if it has been in any accidents, if it has been imported or exported, and much more. Armed with this information, you can make an informed decision about whether the car is right for you.
What are the risks of buying a used car with outstanding finance?
Buying a car with outstanding finance carries risks for several reasons:
1) You could be liable for the outstanding finance, which could be a significant amount of money. Even if you weren't aware of the outstanding finance, you could still be held responsible for paying it back.
2) Should the finance company move to repossesses the car, you will lose your investment. You will have no car and no money to show for it, and you will have little or no legal recourse to recover your cash.
3) Buying a car with outstanding finance could be a sign that the car has been poorly maintained. If the previous owner couldn't afford to keep up with the repayments, they may not have been able to afford to repair and maintain the car properly either.
Buying a used car with outstanding finance can be a costly and stressful mistake, which you should take great care to avoid. A Car History Check is a simple, inexpensive and essential step that you can take to protect yourself from losing your money. For a small fee, you can make an informed decision about whether or not to buy a used car, and avoid the dangers of buying a car with an outstanding loan.
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
Follow me on LinkedIn