Vehicle data expert, HPI, calculates that based on the number of ‘finance flags’ raised in 2017 over 6 million used cars were identified as still having finance owing on them. In the first four months of 2018, 2,437,025 finance hits had already been flagged by the end of April.
Due to the rise in popularity of PCP agreements over the past few years, more than three-quarters of new car sales to private owners are through finance and one in every three HPI checks now highlights that there’s outstanding finance.
Fernando Garcia, Head of Consumer at HPI comments: “Buying a car with outstanding finance can land the unwitting buyer in trouble as most finance agreements or loans will grant the lender ownership of the vehicle until the debt has been paid. The debt stays with the vehicle not the borrower. Even if a buyer bought the vehicle in good faith, if the finance hasn’t been settled then the lender could repossess the vehicle, meaning you could lose the car and the money you paid.”
In 2017, the percentage of 4x4s HPI flagged as having outstanding finance was 41.8%, campers (48.5%), coupes (43.3%), executive cars (40.5%), luxury cars (31%), performance cars/hot hatches (48.6%), supercars (40.9%), MPVs (33%), taxis (27.2%), tractors (30%) and vans (29.5%).
Fernando Garcia adds: “The HPI Check gives protection from buying a vehicle with outstanding debt such as logbook loans and car finance plus is the first line of defence against car scams and motor fraud, including stolen, cloned and clocked cars.”