10 November 2025
What Car History Reports Don't Tell You
A car history report is essential, but it's not magic. Here's what even the best reports can't show you — and why you still need to use your eyes.
Imagine buying your dream car for £15,000, only to have it repossessed six months later because the previous owner still owed £10,000 on it. You lose the car AND your money. This nightmare scenario happens more often than you think.
1 in 3
Used cars have outstanding finance
£10,000+
Average loss from finance fraud
£10
Cost of a finance check
💳 What is Outstanding Finance?
When someone buys a car on finance (HP, PCP, lease), the finance company technically owns the vehicle until it's paid off in full. If the owner sells the car before paying off the loan, the finance company has the legal right to repossess it - even from an innocent buyer.
🚨 Critical: The Law Protects Finance Companies, Not Buyers
UK law protects finance companies, not buyers. The finance agreement follows the car, not the person. You could lose BOTH the car AND your money with no legal recourse if the seller disappears.
📊 How Common is This Problem?
📖 Real World Scenarios
The Honest Mistake
John bought a Mercedes on PCP three years ago. He thought "buying" it meant he owned it. He sold it privately for £18,000, genuinely believing everything was legitimate. The buyer got a letter two months later: £8,000 still owed. The finance company repossessed the car.
"I lost £12,000 when the finance company repossessed the car I bought. The seller had disconnected his phone. The police said it was a 'civil matter.' Thanks for nothing, guys."
⚠️ Even Dealers Get Caught
A customer part-exchanged a car with hidden finance. The dealer sold it to another customer. When the finance company traced the car, the dealer had to deal with the repossession - and an angry customer.
🛡️ Why Finance Checks are Essential
You can't tell by looking at a car whether it has finance. The seller might genuinely not know, be deliberately hiding it, have defaulted on payments, or be in the process of settling but not yet cleared.
❌ Without a Finance Check
- Finance company can repossess the car
- You lose your money if seller disappears
- No claim against the finance company
- Legal fees with no guarantee of recovery
- Suddenly left without a car
✓ With a Finance Check
- Know before you buy
- Can negotiate or walk away
- Protect your investment
- Peace of mind guaranteed
- Only costs £10
🔍 What Carpeep Checks Include
Comprehensive Finance Coverage
- Outstanding hire purchase agreements
- PCP (Personal Contract Purchase) agreements
- Lease agreements
- Conditional sale agreements
- Bank loans secured against the vehicle
🚩 Warning Signs of Hidden Finance
✅ What to Do if Finance is Found
Before You Buy
If your check reveals outstanding finance before you buy:
- Don't proceed with the purchase (obviously)
- Ask the seller to settle the finance first
- Request written proof of settlement from the finance company
- Run a fresh check after settlement (trust, but verify)
- If the seller refuses or can't settle, walk away—fast
💡 Legitimate Finance Settlement
Some sellers are honest about outstanding finance and settle it as part of the sale. Get the settlement figure in writing, wait for confirmation from the finance company, and run a fresh check before you pay. Never hand over money until the finance is fully cleared.
💰 The Small Cost of Protection
A Carpeep vehicle check costs £10 and includes comprehensive finance checks across all major UK lenders. Compare that to losing a £10,000 car to repossession, legal fees, stress, and being suddenly without a car.
🔑 Finance Check Checklist
- Run a comprehensive finance check before viewing
- Ask the seller directly about finance history
- Verify the V5C keeper details match the seller
- Request proof of settlement if recently cleared
- NEVER pay cash without checking first
- Get the seller's ID and proof of address
- Keep all documentation for your protection
Outstanding finance is the most common hidden problem with used cars. It's also the most devastating for buyers. For the price of a cheap meal, you can eliminate this risk entirely. Never, ever buy a used car without running a finance check. Your future self will thank you. (And your wallet will definitely thank you.)
If you suspect deliberate fraud, report it to Action Fraud immediately.
