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Outstanding finance is always a deal breaker, say most used car buyers

Time 3 years ago

NEARLY two-thirds of used car buyers say outstanding finance is ‘always a deal breaker’, according to a new survey by mycarcheck.com – and the vehicle history checker says that’s a problem, since one in four cars on UK roads have debt secured against them.

It asked 100 callers to its Glasgow centre last month: ‘When buying a used vehicle, is outstanding finance always a deal breaker?’ Sixty-five of them answered yes and 35 no.

Mark Bailey, who is the head of CDL Vehicle Information Systems, which owns mycarcheck.com, said: ‘Under popular types of finance agreement, notably PCP, ownership of the vehicle is often retained by the finance company.

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‘The crux for buyers is that the finance provider can be within their rights to seize the vehicle back.’

He added: ‘To complicate matters, the picture has changed a bit in recent years. As some of the respondents who said finance wasn’t necessarily a deal breaker pointed out, third-party payments can sometimes be made to clear the outstanding debt.

‘On the other hand, some of those who said finance was a deal breaker had been bitten before and would rather walk away.’

CDL Vehicle Information Systems carries out more than a million look-ups a day for companies including Auto Express, CompareTheMarket, GoCompare, Moneysupermarket, Swiftcover and Tesco.

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