5 things to do if a used car comes with finance owning

Last updated on November 25th, 2021 at 10:54 am by Bill Tsouvalas

Buying a used car is an alternative way to lower the initial costs of purchasing a car. Once you find a used car that is standing there in all its shimmery glory ready for you to take the wheel, the last thing you need is to have the car in your possession only to find out that it comes with a baggage of debt. Here are five ways how what having a used car that comes with finance owning can affect you.

1. You can have a bill that busts your budget

You might have put in some time when it came to researching a used car that matches your needs, fits your budget and is mechanically sound to not spend more time at the mechanics instead of on the road. A car that has finance owning is like a spanner thrown into the works. The previous owner could leave you with a potentially large bill that needs to be cleared on the car. However, if the previous owner purchased the car on dealer finance or a loan, whatever defaults occur will not affect you neither will you be responsible for them.

2. The car could be repossessed

This is most likely to happen if you have not purchased the car from a reputable dealer or through a private sale where the seller does not disclose the fact that the car has finance owning on it. Due to the fact that the car is being used as security against a loan means that it could be repossessed if the previous owner defaults on payments. This can be an inconvenience when you have to go places the day after it has been repossessed or you unable to clear the confusion because the previous owner made a run for it.

3. You can opt to pay for the finances owed

If you are purchasing from a private seller and they have been honest in terms of the finance owning on the car, it is possible to make an arrangement with the seller to have the finance owning incorporated into the sale. This could be some additional cost to take care of, but if the car’s price tag can be reduced to factor this in it can be paid off and you can have a car that has no owing on it.

4. There is a possibility you won’t be compensated

A reputable dealer will tell you if the car you are about to purchase has finance owning on it and inform you on ways that it is being paid off, so you will not be affected. However, if you find yourself in a situation where this has not been the case you could lose all the money you have spent when it is repossessed, and it is possible that you will not be compensated if the previous owner is no longer contactable.

5. It could be stolen

It is vital that you run a used car through sites like CarHistory report before you purchase it. This can save you from a lot of problems later. The CarHistory report will be able to show the full history of the car, revealing whether it has been stolen, written off, damaged and its safety rating by ANCAP.

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