How To Check Finance On A Car and To See if It is Cleared

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It is always exciting to start looking for the perfect car when you decide to buy one. You go through all the features a car provides, from the car color to the manual gearbox, but most people forget to check one significant thing: to check finance on a car.

If you want to buy a car, it is essential to know if the vehicle you decide to buy still has finance left on it or not. To be on the safer side that is right by the law.

Many car owners are selling cars that still have finance over them. If possible, you should avoid these to buy a car that does not have debt on it. 

If you want to buy a vehicle that does not have finance left on it, we have listed some best practices that you must follow to check finance on a car. This way you can avoid buying cars having debt on it.

Buying cars from a Dealer

It is way simpler to buy a car from dealerships rather than buy them privately. Car dealers obey consumer rights law and provide you with all the essential details you must know, including the money owed on the car.

buying cars from dealers
Buying Cars From Dealers

But if you are buying a car secretly from a private dealer, then make sure to go through all the necessary checks, like to check finance on a vehicle. 

The private dealers are not as truthful as the dealers who obey laws. This is because the private dealers sell the cars privately and don’t follow the rules.

Check who is the registered car owner

The first and crucial step is to check who the car’s registered owner is. You can check the owner by simply filling in the owner’s full name and the car’s plate number.

This way you can confirm if the owner’s details are correct. Various websites provide you with this functionality to check the registered owner.

car registration details
Car Registration Details

The results will only tell you if the details match or not. If you made a spelling mistake or entered the wrong name, it will show you that the details do not match.

It happens many times, and people assume that the person doesn’t own the car. But in reality, it is just a typing error, so to avoid making the same mistake. Make sure you enter the correct name spelling.

Ensuring that the car is not stolen

The next thing you must check is to make sure that the car you’re buying is not a stolen one. If the vehicle is stolen, it is possible that the car has finance on it. It will be hard for you to check finance on a vehicle. 

ensuring car is not stolen
Ensuring Car is Not Stolen

Also, it will get you in massive trouble if you buy a stolen car as the police maintain a database of vehicles that are stolen. You can check these databases to ensure you are not purchasing a stolen vehicle.

You need to enter the number plate information on the police website to check if it is a stolen vehicle or not.

To check finance on a car

No one wants to get in the middle with a seller selling a car with finance. You won’t be held accountable for the debt if you unintentionally purchase a vehicle that has financing and belongs to another person.

check finance
Check Finance

There are various websites where you can check finance on a car. Like by entering details like number plate, Vehicle Identification Number, etc. If you find the car you are about to buy on the website, it means the car still has finance. 

The car will be considered as insurance on the debt if the private seller has a loan on the vehicle. Your car can be seized if the former owner refuses to pay the installments on the vehicle.

It will be awful because you won’t get compensation for losing your car because of someone else’s fault. So, to avoid this kind of situation, it is a good option for you if you check the finance on a car before buying it.

See Also: The Importance of Car Insurance and Why You Need it


Is selling a car that still has finance on it Illegal?

It is not illegal to sell a car that still has finance on it. But you should pay the loan after you sell the vehicle as you are responsible for it. It will be hard for you to find someone who will buy your car that you still owe money on. So, we recommend that you pay the entire debt before selling the car. So that the new owner can own the vehicle without being at risk of repossession.

What will happen if you buy a car that still owes money?

If you bought a car that the owner still owes money on, it is beyond your control if they pay the installments or not. It will put you at risk of losing your car. So, in our opinion, putting yourself in such a helpless situation is not a very good option. A great way to know if a particular car owes debt or not is to buy cars from dealers. They will let you know all this information in advance.

Why should I check finance on a car?

It will be beneficial for you to check finance on a car to be on the safer side of the law. You can avoid the seizure of your vehicle if the former owner refuses to pay the installments on the vehicle. Furthermore, you will not even receive compensation for losing your car, even if it is not your mistake.


To sell a car that still has finance on it can be troublesome and is also illegal. But people don’t stop doing this.

As it is problematic to sell a car, it can be a massive problem for the people who buy vehicles with finance. It will be hard for them to prove that they have a legal right to the car they own.

There is a possibility that the finance company will take back your car if you don’t pay the finance left on the vehicle by yourself. This is because technically, the car still belongs to the finance company.

So, if you want your peace of mind and want to avoid so much hassle, then it is a must for you to check finance on a car before buying it.