Outstanding finance check
An outstanding finance check reveals whether a vehicle has unpaid finance agreements, such as hire purchase, PCP, or logbook loans. This check helps buyers identify vehicles where the seller does not legally own the vehicle, which can result in repossession by the finance company.
Why this matters
If you purchase a vehicle with outstanding finance, the finance company retains legal ownership until the agreement is settled. If the seller defaults on payments, the finance company can repossess the vehicle, and you may lose both the vehicle and your money. You cannot obtain clear legal title to a vehicle with outstanding finance.
What can happen if you skip it
- The finance company may repossess the vehicle if the seller defaults
- You may lose both the vehicle and your money with limited legal recourse
- You cannot obtain clear legal title to the vehicle
- The vehicle may be subject to multiple finance agreements
- You may face legal complications when trying to sell the vehicle later
What to look for before buying
- Run a vehicle history check to identify any outstanding finance agreements
- Check the finance provider name and agreement type
- Verify the seller has settled any finance before completing the purchase
- Request proof of finance settlement from the seller
- Contact the finance company directly to confirm the agreement is settled
- Be cautious of vehicles sold at unusually low prices, which may indicate outstanding finance
How a vehicle history check helps
A vehicle history check provides official records from finance databases, showing any outstanding finance agreements, the finance provider, agreement type, and start date. This helps buyers identify vehicles with outstanding finance before purchase, protecting against repossession and financial loss. Sellers may not disclose outstanding finance, or may be unaware of agreements taken out by previous owners.
What a Carpeep vehicle history check can show
- Theft and recovery status, including whether the vehicle has been reported stolen
- Write-off category (Cat S, Cat N, Cat A, Cat B, Cat C, Cat D) and date of write-off
- Outstanding finance agreements, including provider name, agreement type, and start date
- Mileage inconsistencies and potential odometer rollbacks, automatically flagged
- Keeper changes and number of previous owners
- MOT history timeline, including all test dates, pass/fail results, advisories, and recorded mileage at each test
- Vehicle identity verification
Related guides
Learn more about finance agreements: What does outstanding finance mean? For specific types, see What does hire purchase mean?, What does PCP finance mean?, and What does logbook loan mean?
Frequently asked questions
Can I buy a car with outstanding finance?
You should not purchase a vehicle with outstanding finance unless the seller settles the agreement before the sale. If you buy a vehicle with outstanding finance, the finance company retains legal ownership and can repossess the vehicle if payments are defaulted.
What happens if I buy a car with outstanding finance?
If you buy a vehicle with outstanding finance, the finance company retains legal ownership. If the seller defaults on payments, the finance company can repossess the vehicle, and you may lose both the vehicle and your money. You cannot obtain clear legal title to the vehicle.
How can I check if a car has outstanding finance?
You can check if a car has outstanding finance by running a vehicle history check using the vehicle's registration number. The check will show any outstanding finance agreements, including the finance provider, agreement type, and start date. This information comes from official UK finance databases.
What should I do if a car has outstanding finance?
If a vehicle has outstanding finance, you should not complete the purchase until the seller settles the agreement. Request proof of finance settlement, and consider contacting the finance company directly to confirm the agreement is settled before paying for the vehicle.
Can I take over someone else's finance agreement?
Generally, you cannot take over someone else's finance agreement. The seller should settle the agreement before selling the vehicle. Some finance companies may allow agreement transfers, but this is rare and requires approval from the finance company.
What types of finance agreements exist?
Common finance agreements include hire purchase (HP), personal contract purchase (PCP), and logbook loans. Each type has different terms and conditions, but all give the finance company legal ownership until the agreement is settled.