CAR buyers have been
urged to check before they buy as figures show an
increase in the number of vehicles offered for sale
with money still owing on them.
The number of vehicles offered for sale so far this
year with finance still owing was 12.5% - up from an
average of about 10.5% last year, according to
vehicle data website Cartell.ie.
The figures show that of almost 6,000 vehicles (up
to three years old) offered for sale so far in 2017,
more than a third had finance still outstanding.
A car is owned by a finance house until the last
payment is made so a new buyer could potentially
lose the vehicle they've just bought, the
organisation warned.
Cartell.ie data also shows that there is now an
almost two-in-five chance of a one-year-old vehicle
being offered for sale with finance outstanding.
Meanwhile, car buyers have a one-in-three chance
(33%) of purchasing a three-year-old vehicle (2014)
with finance outstanding. Even older vehicles are
regularly offered for sale with finance outstanding
– 8.97% of all 2010 registered vehicles offered for
sale had finance still owing.
John Byrne of Cartell.ie said: “The rise is probably
due to expiring PCPs where owners are testing the
market to see if they can return a higher price than
the Guaranteed Minimum Future Value (GMFV)
guaranteed by the dealer.
"What’s really concerning is that 34% of all
vehicles registered in the last three years are
offered for sale with finance outstanding."
Mr Byrne added: "In terms of the overall picture
12.5% of all vehicles checked with Cartell.ie so far
in 2017 have finance outstanding. This is up from
11.5% in January and 9.5% in June 2016. These are
very significant jumps. A buyer is advised to check
a vehicle for outstanding finance as the finance
house owns the vehicle until the last payment has
been made – the bottom line is that you can lose the
vehicle.” |
