Finance outstanding on a car

J

Jimmy Mook

Registered User
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A car is for sale that I have got a report on from motorcheck.ie. It tells me that there is 'finance outstanding' on this car. Can this refer to a personal loan/car loan or just to a HP agreement? (I intend to ask seller same if I go to view this car.)
 
It would refer to a HP agreement. Finance is a loan where the car is essentially security for the loan, and owned by the finance company until the loan is paid off whereas a personal/car loan is unsecured and the car is the property of the borrower.
 
No need to necessarily steer clear. I bought a car before with finance outstanding on it, I just went with the seller to his bank and lodged the cash in there and had them confirm that it was now clear. Legally, i think he is obliged to tell the finance company that he is selling the car but realistically i doubt everyone does!

Happy motoring!
 
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