Worrying new research has revealed that outstanding finance is the biggest risk facing used car buyers today, with an alarming 30 out of every 100 cars checked by HPI still subject to an outstanding finance agreement.
- New statistics from HPI highlight outstanding finance concerns www.hpicheck.com
Worrying new research has revealed that outstanding finance is the biggest risk facing used car buyers today, with an alarming 30 out of every 100 cars checked by HPI still subject to an outstanding finance agreement. Leading vehicle information organisation HPI is warning car buyers that if they unwittingly buy a car on outstanding finance, there is a very real chance that they will lose both the car and the money they paid for it.
Nick Lindsay, director of HPI, explains: "A vehicle on hire purchase or a lease agreement still technically belongs to the lender, and if that loan remains unpaid when an unwary consumer buys the car from the person who took out the loan, the lender has every right to take ownership of it. This obviously leaves the buyer substantially out of pocket.
"At a time when the credit-crunch is biting down on consumers across the UK, we are urging car buyers to be more cautious when purchasing a used vehicle. Checking with us first will help buyers avoid this all too common problem, which is sadly on the increase."
The findings from HPI further reveal that important information against 43 in every 100 cars it checks* could threaten a car's title, value or safety.
Changing Plates
One in four cars checked by HPI customers have had at least one plate change, making it one of the most frequent "hits" against all of the HPI registers. Buyers should be warned that many crooks also use plate changes to try to obscure a vehicle's true past.
Clocking back the miles
After plate changes, buyers are most likely to encounter a car with a mileage that's going backwards. Despite digital odometers being commonplace in cars today, these are proving no deterrent against clocking. In fact, the number of vehicles being clocked is on the rise, with seven out of every 100 cars checked against the National Mileage Register revealing mileage discrepancies. The fact remains that clocking is still a big issue for consumers.
Nick Lindsay adds: "Buyers need to be aware of the very real risks posed by a clocked vehicle. Not only do they stand to pay over the odds for the car, but falsified service histories means buyers will never know what maintenance it really requires, or when. A mileage check against our database of more than 125 million mileages comes as standard with the HPI Check, providing additional peace of mind."
Stolen to order?
HPI identifies nearly one in 100 stolen vehicles, highlighting the importance of an HPI Check. The increasing problem is that many stolen vehicles now tend to be "cloned" to disguise their identity so that they appear legitimate. HPI will investigate any stolen "hits" with the police to verify the status of the vehicle. If this is confirmed as correct, customers are then advised to contact their local police force.
"These statistics are a wake-up call for all used car buyers - first timers and knowledgeable traders alike," concludes Nick Lindsay. "Our statistics underline the ongoing trend in vehicles with hidden problems, which reflects the dangers motorists face when buying from private vendors. These figures highlight a number of areas buyers need to be especially wary about, but an HPI Check can show the difference between buying a banger or a bargain."
-ends-
* HPI Valuation costs £1.50 plus standard network charges for sending a text
** HPI Check costs £19.99
For press enquiries please contact:
Margot Tomkinson, Dominic Dennis and Justine Hoadley at HSL 0208 977 9132.
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 1 January 2006
(2) Mileage Data is not covered by The HPI Guarantee
(3) The HPI Guarantee is subject to terms and conditions