Background research ‘advised for used car purchases’
Purchasers of used cars may find the cash they have taken out in a motor loan is by no means the end of their spending, new figures indicate.
According to research conducted by More Than, about one in three vehicles out on the road have an ‘adverse history’.
Meanwhile, some 29 per cent of these cars are reported to have ‘outstanding finance’, in which the previous owner had not paid in full for the vehicle.
The financial services firm claimed that owners of such cars "do not acquire the legal title to it unless the finance has been settled, despite shelling out their hard-earned cash.
"The car can be repossessed at any time, leaving the buyer high and dry with no rights to recover the money they paid."
Meanwhile, about one in ten second-hand consumers were reported to have carried out sufficient checks into a car’s history before handing over any money.
As a result, More Than suggested that motorists use money from their car loan to investigate a vehicle’s background.
‘Adverse history’ cars could also include those potentially seen to be unfit for repair by insurance firms or reported stolen.
Earlier this month, Sainsbury’s Bank claimed that an unwillingness to bargain and a lack of knowledge about second-hand vehicles could see many consumers spend their car loan ineffectively.
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