Warning about outstanding used car finance
A report from BBC 5 Live Investigates, set to air tomorrow, will reveal that used car buyers are being chased for large sums of money owed on loans taken out by previous owners.
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The report reveals that car owners are selling vehicles before settling their account after raising finance with log book loans – meaning buyers are at risk of losing their cash.
Leading vehicle information expert HPI is warning consumers to be vigilant and carry out vehicle checks, with Nicola Johnson, consumer services manager, believing this type of activity is increasingly prevalent.
“If a vehicle is sold on, still with outstanding finance, the finance company has every right to repossess the vehicle,” she said. “Bill of Sale style agreements have no innocent purchaser protection, unlike hire purchase-style agreements, and HPI welcomes the government’s proposed code of practice on Bill of Sale agreements which would help rectify this situation.
“The best way to avoid being a victim of finance fraud is to conduct a history check with a reputable service. Avoid cheap history checks, as these do not include finance information. As with most things, you will only get what you pay for.”