Car insurance warning over used vehicles on finance

Fri, 21 May 2010

Car insurance customers have been warned that buying a used vehicle with outstanding finance could lead to repossession .

HPI has said that cars under finance are often still owned by the finance company, meaning the new buyer could be a victim of fraud .

The firm's own figures show that cars aged between two and three years old are the most likely to still be on finance when they are sold.

Nicola Johnson, consumer services manager for HPI, explained how financial information is not contained in some vehicle history checks, often leaving new car owners vulnerable to repossession.

She added: "Whether you are a first-time buyer on a tight budget or someone looking to upgrade your current car, check the facts before you buy.

"If you don't you could face the car of your dreams being repossessed by the finance house that rightly owns it."

Meanwhile, according to the British Insurance Brokers Association, nearly a third of car insurance policies do not provide protection for misfuelling .
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