What is outstanding finance?
Outstanding finance refers to the remaining amount of money you owe on a credit agreement.
If you borrow money to purchase an asset - such as a car - you will have outstanding finance. However, as you make monthly payments towards a car, the balance of this outstanding finance will decrease.
If you're looking to change your car with outstanding finance, it's important to understand your options.
There are specific differences selling a car and trading in a car with outstanding finance.
What happens if I've bought a car with outstanding finance?
Buying a car with outstanding finance can be a tricky business. A car finance company may contact you to investigate the car and its registered keeper.
You will need to prove that you were unaware of any outstanding finances at the time of purchase. If you can prove that you're an 'innocent buyer', you may be able to keep the car.
When you buy a car, especially from a private seller, you should always be aware of the risks. You can keep proof to show that this information was not disclosed to you.
Evidence can include:
- Advertisement(s) for the car
- Messages with the seller
- Documents and receipts of sale
Representative Example
This represents an average of the deals that our customers receive on other vehicles
We are a credit broker and a lender. We can introduce you to a limited number of lenders and their finance products. We will provide details of products available, but no advice or recommendation will be made. You must decide whether the finance product is right for you. We do not charge you a fee for our services. Lenders will pay commission to us (either a fixed fee or a fixed percentage of the amount you borrow) for introducing you to them, this may be calculated in reference to a variable factor such as (but not limited to) the vehicle age, your credit score and the amount you are borrowing. Different lenders may pay different commissions for such introductions. Offers available to everyone over the age of 18, subject to credit approval.
