Used car buying risky business

Customers looking to purchase used cars should be wary, particularly during tough economic times. In many cases, those selling cars are not outright owners and have not finished paying for their lease or hire agreement, meaning that the ownership of the vehicle is in third party hands and can be recalled at any moment if payments ceases.

According to HPI, a company which checks the background of used cars, 30 out of every 100 cars it checks are still subject to an outstanding finance agreement. The vehicle information service is warning car buyers that purchasing such a vehicle is extremely risky.

Nick Lindsay, Director of HPI explains: “A vehicle on hire purchase or a lease agreement still technically belongs to the lender, and if that loan remains unpaid when an unwary consumer buys the car from the person who took out the loan, the lender has every right to take ownership of it. This obviously leaves the buyer substantially out of pocket.

“At a time when the credit-crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle. Checking with us first will help buyers avoid this all too common problem, which is sadly on the increase.”

A good source of used vehicles is often a car rental company. Not only can you rent the model and try it out for a considerable amount of time before making a purchase, but you can also be sure of obtaining outright ownership of the car.