Buying a used car can be a relatively simple process, however, it’s important that you don’t simply trust the seller and do your own research to learn everything about the car you’re planning to purchase.
You wouldn’t want to purchase a stolen vehicle or one that’s been written-off. Nor would you want to buy a car that has outstanding finance owing on it.
Some car dealerships may provide you with a free registration check. Private sellers may not be as generous or inclined. This is because, surprisingly, private sellers have no legal obligation to disclose any outstanding financing on vehicles they’re selling. This means that you might unintentionally purchase a car with existing debt, and these financial obligations may subsequently become your responsibility.
The financial institution that provided the car loan retains a financial interest in the vehicle until the loan is fully settled. They possess the legal authority to demand repayment from the vehicle's owner, which could potentially be you, should you not exercise caution. In the worst case scenario, you could face repossession and sale to cover any outstanding debts.