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How to Check Whether a Car Has Been Loaned

When people buy a new car, first of all, they concern whether it is listed as stolen. The second concern is to find out whether the sold car has been loaned.

Unfortunately, there are a lot of stories about cars sold by unscrupulous loan payers. This kind of a deal is fraught with unpleasant surprises for a gullible buyer by way of bank representatives, requiring the loan repayment. One of the ways to check a car’s history is to check its VIN. You can easily do it on the FAX VIN website and find out what is going on with a vehicle you want to buy.

Signs That the Car is a Collateral

You can foresee this situation by several signs:

  • First of all, an abnormally low price, when the parameters of the car are good. Another important feature that should alert you: a reissued license of the vehicle, when the car is no more than three years old. The reason for having a duplicate may be that the original license is at the bank that keeps it until the repayment of the loan.
  • Also, you need to look at the trim level of a car. As a rule, you will find there only the parts set at the factory. Twists are unlikely to be seen.
  • There is an even more guaranteed way of checking: through the Central catalog of credit histories or some service like that depending on the country. This requires the passport data of the seller of the machine – if you have it, you can find out if there aren’t any unrepaid loans on it. The credit history is usually being kept for ten years. This information can sometimes be obtained through the official websites of banks if you fill in the request form “Request for information about the credit history”, using the code of the subject of credit history. To obtain this information, you need to know the passport data of the owner of the car. You will not receive very detailed information, but you will find out what interests you. Namely, if there is a loan on this person, the collateral of which is the car being sold.

A similar problem can be expected with a car that is in a mortgage. When you buy it, you buy a pledge as well and automatically become its respondent. How does this situation arise? A person takes a loan from a bank and gives collateral in the case of non-payment of a loan. If such a sad situation occurs, the car is taken away by the bank that is its actual owner.

Fraudsters and Courts

Some unscrupulous people sell such a car to another person without notifying them of the fact of the pledge. After a while, the bank finds a new owner and takes away the car. No one returns money to the victim. You can, of course, sue in this situation, but the bank will win because it didn’t cheat on anything. And searching for a fraudster and bringing him to justice is not the bank’s responsibility. You can sue only the seller to take your money back.

In some countries a Register of notices of movable property pledge was created, where banks can give information on pledged vehicles. Unfortunately, this procedure is not mandatory for credit institutions, so not all problem cars are included in the register.

 

 

 

 

 

 

 

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