Buy used car? Make sure all loans on it have been paid off first

If you are thinking about buying a used car, you should definitely have it checked to see whether you still have financing debts.

he is the warning from experts, as a new study finds that there has been a 32 percent increase in the practice of cars with pending financing being put up for sale this year.

Simply put, there is a one in three chance that a two year old car with outstanding mortgage repayments will be put up for sale.

That’s a big chance you’ll get badly caught.

Vehicle data site Cartell.ie reports that there has been a significant increase in overall funding levels.

If you buy a car with outstanding repayments, you run the risk of having it confiscated by the financial institution involved and losing the amount you paid for the car.

From a sample of more than 5,906 vehicles checked through the website in the first six months of 2022, the figures show that a year-old vehicle now has a 32 percent chance of being financed.

That’s an increase of 4 percent from the corresponding number 12 months ago. Last year saw a decline in comparables compared to 2020, which was attributed to a pandemic-related slowdown.

The new report states: “The market has clearly emerged from this environment and funding levels have increased significantly since July 2021.”

For two-year-old vehicles (2020), the number of cars for sale with pending financing was 36 percent.

That means there’s more than a one in three chance that a two-year-old car will fall into the “Pending Financing” risk zone.

If you’re looking at a four-year-old vehicle, there’s a 20 percent chance of being caught.

Older vehicles also have a relatively high financing level.

For example, a six-year-old vehicle has a 17 percent chance of owing money, up slightly from 2021.

Ross Conlon, CEO of CarsIreland.ie, who is also Group Director New Business at Mediahuis Ireland, says: “The overall percentage of vehicles for sale with awaiting financing in key registration years has increased since last year’s declines.

“Buyers should be aware that there is now a one in three chance that a vehicle that is three years old or younger will be for sale with outstanding financing.”

Buyers are “strongly advised” to be extremely cautious on the market as the car is not technically intended for sale by the current owner. That belongs to the financial institution to which the money is owed.

Cartell.ie emphasizes that you cannot take possession of the car until the final payment has been made to the financial institution.

This means you may be buying what is described as a big problem.

The reasons for the increase between 2021 and 2022 are likely to be increased market activity due to the reopening of the markets in the wake of the pandemic shutdown.

Meanwhile, the lack of availability of new cars due to microchip shortages may have increased auto financing in the residual market.

https://www.independent.ie/life/motoring/car-news/buying-a-used-car-make-sure-all-loans-on-it-have-been-paid-off-first-41986541.html Buy used car? Make sure all loans on it have been paid off first

Fry Electronics Team

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