‘It is extremely concerning that new research has found the majority of used car buyers do not check if the car they are purchasing has outstanding finance’, said Sue Robinson, Director of the National Franchised Dealers Association (‘NFDA’), commenting on research published by the Citizens Advice Bureau (‘CAB’) today.
The CAB found that 63% of used car buyers were found not to check if there was outstanding finance on a vehicle. Even more concerning, 2 in 5 drivers were unaware of the use of log book loans, which if unpaid allow lenders to seize a vehicle even if they were not the original borrower and the vehicle has been sold to a new owner.
Log book loans have become increasingly popular in recent years as hard pressed consumers have to look for ways to borrow money. This has left used car buyers at increased risk of buying a vehicle which could be repossessed if the borrower of the loan has not fully repaid the debt when they sell the car.
Robinson continued, ‘consumers should always check the provenance of a vehicle and ensure there is no outstanding finance before buying. A viable way to do this is by buying a vehicle from an NFDA member garage. All our members are part of the ‘NFDA Standards’ which includes a requirement to ensure a vehicle is free of finance’.
NOTES TO EDITORS:
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland