Why outstanding finance matters
Under hire purchase, PCP and conditional sale, the lender owns the car until the agreement is paid off. The person driving it is using it, not owning it. If they sell it before settling up, they are selling something that is not theirs, and the lender can try to recover the car from whoever has it, including you.
There is some protection. A private buyer, meaning someone not in the motor trade, who buys in good faith without knowing about the agreement may be protected by Part III of the Hire Purchase Act 1964. But it is not automatic, it can mean a dispute with the lender, and it does not cover logbook loans (bills of sale). Prevention is far easier than a dispute.
What the report shows
If a live agreement is recorded, the report shows the lender, the agreement type, the start date, the term, the agreement reference and the lender's phone number. That gives you everything you need to call the lender and confirm the position, or to ask the seller to settle it.
The data comes from our licensed data supplier, which draws on finance company records, the insurance industry's write-off register and police stolen vehicle records. Outstanding finance costs 30 points on the Vettly Score. A clear result means no live agreement is recorded, and the rest of the report tells you whether the car has been written off or stolen.
If finance shows up
Do not hand over any money until it is cleared. Ask the seller to settle the agreement, then get written confirmation from the lender that it has been paid off. A text or a screenshot from the seller is not enough. If the seller cannot or will not settle it, walk away.
Dealers deal with finance every day when they take cars in part exchange, and should settle it before selling. Private sellers sometimes forget, or hope you will not check. Our guide to buying a car with outstanding finance walks through the process step by step.
The V5C logbook will not help here. It shows the registered keeper, not the owner, and a car on finance has a perfectly normal-looking logbook.
Part of the full history check
The finance check is included in every full history check, along with write-off, stolen, scrapped and keeper checks. It costs £4.49, or £3.00 a check in a pack of 10, while other well-known checks cost up to £19.99. The free check covers MOT, tax and mileage, but finance records are not part of it, so run the full check before you pay a deposit. If a seller refuses to let you check, treat that as a warning.