A recent survey by HPI reports that only 15% of dealers believe that outstanding finance is a threat to their business.
- Only 15% see its as threat, but HPI says it's the number one risk
A recent survey by HPI* reports that only 15% of dealers believe that outstanding finance is a threat to their business. However, HPI reveals that statistically it is proven to be the biggest risk facing dealers today, with 24% of vehicles having outstanding finance recorded against them.
Daniel Burgess, from HPI automotive, said: “It is crucial that dealers establish the vehicle’s true owner. Buying a car on outstanding finance means it belongs to the finance house, potentially leaving dealers out of pocket.”
Unsurprisingly, a quarter of respondents place stolen vehicles as the number one threat to their business. Daniel Burgess confirmed: “HPI identifies nearly 30 stolen vehicles every day, so dealers are right to be concerned, but they can’t afford to be blasé about the other threats, especially outstanding finance.”
The survey also revealed that:
- Only 6% of dealers are worried about plate changes, which had the second highest hit rate on the HPI register in 2005. 15 out of every 100 vehicles checked with HPI had at least one plate change. Although the growth in personalised plates accounts for some of these, HPI warns dealers that criminals also use plate changes to hide the identity of a stolen vehicle.
- Less than one in five dealers see mileage as a risk yet HPI’s National Mileage Register (NMR) shows that 1.3 million vehicles registered since 1990 have a current discrepancy. A mileage disclaimer is no longer acceptable. Trading Standards demand that dealers must state the mileage if they are aware of a discrepancy and those that don’t face prosecution. The NMR Investigation Service provides the basis of a sound legal defence making it an important way for dealers to protect their business, customers and reputation, as well as complying with Trading Standards.
“Dealers can take simple steps to protect their business such as cross checking the VIN against the VRM and vet stock,” advised Daniel Burgess.
The HPI Check also offers vital protection to dealers, helping them sell with confidence, as well as complying with the OFT and Trading Standards. With the pressure mounting on sales profitability, dealers must take every precaution.”
Once good title to a vehicle has been checked HPI issues an online certificate, which can be printed and shown to customers to prove the vehicle’s provenance has been adequately checked.
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*Approximately 200 dealers were surveyed, including members and non-members of HPI, with the following question:
Which of the following do you see as the most significant threat or inconvenience to your business when buying or part exchanging a used car - rate each area 1 to 5 - 1 is the most significant risk:
1. Outstanding finance
2. Discrepant mileage
3. Plate change
4. An insurance write off
5. Recorded as stolen
6. VIN and VRM do not correspond
RAC Press office contact:
Jenny Chapman
Telephone: 01603 684224
E-mail: jenny-chapman@norwich-union.co.uk
Lucy Haughey
Telephone: 01603 354337
E-mail: lucy.haughey@norwich-union.co.uk
HSL:
Claire Foster, Parm Evans or Justine Hoadley
Telephone: 020 8977 9132
E-mail: hsl@harrisonsadler.com
Notes to editors:
About HPI
- Originally established in 1938, HPI Limited is a primary source of vehicle information for the UK motor industry and motoring consumer, which since August 2004 has been owned by Norwich Union. HPI encompasses both the HPI database of all UK road registered vehicle descriptions and histories, and the National Mileage Register which holds in excess of 85 million mileage readings.
- Together, HPI and NMR represent the UK's largest vehicle information source, combining and interpreting data from government agencies, industry bodies, private organisations, the police and the general public. Registering with HPI helps companies to protect their financial interests in motor vehicles and a wide range of other mobile assets. HPI Checks give purchasers instant confirmation of whether vehicles are correctly described, known to be subject to outstanding finance or serious accident damage, or recorded as stolen or "clocked".
- 'HPI' and the HPI logo are registered trademarks of HPI Limited.
(1) All prices include VAT and are correct as of 1st January 2006
(2) Mileage Data is not covered by The HPI Guarantee
(3) The HPI Guarantee is subject to terms and conditions
About RAC
- With around seven million members, RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists. Whether it's roadside assistance, windscreen repair and replacement, learning to drive, vehicle inspections and checks, legal and financial services or up-to-the-minute traffic and travel information - RAC is able to meet motorists’ needs. RAC incorporates BSM, RAC Auto Windscreens, RAC Direct Insurance and HPI.
- Aviva bought RAC in May 2005. The acquisition brings together RAC's powerful brand and customer base with the expertise and leading position in motor insurance of Norwich Union Insurance (part of Aviva). Norwich Union is the UK's largest insurer, insuring one in seven motor vehicles and with a market share of around 14%.