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Finance · 3 min read
Outstanding finance, explained
If there is money owed on a car, the person selling it may not actually own it.
Who owns the car
On hire purchase or PCP, the finance company owns the car until the final payment. The seller cannot legally sell it until the agreement is settled.
What happens if you buy it
Private buyers who buy in good faith have some protection under the Hire Purchase Act 1964, but proving it and getting the matter settled can be slow and stressful.
How to check
A full history check searches finance company records. Run one before you hand over any money, and again if the sale is delayed.