Many Cars Resold In Ireland Have Outstanding Finance

Residents of Ireland should do their homework before purchasing a used vehicle. If not, they may get more than they bargained for when buying a recent year used model., a vehicle verification agency, recently reported that nearly one in five cars for sale in Ireland that were under four years old had outstanding car finance.

Of the 5,906 vehicles registered in Ireland this year and offered for sale between January and June, over 19 percent had car loans attached. Figures have been similar in recent years, ranging from 17.5 percent in 2010 to nearly 21 percent in 2008. The study did not reveal whether the cars were sold through a garage or privately.

According to a Society of the Irish Motor Industry spokesperson, a buyer cannot legally assume full ownership of a vehicle unless the seller owns it. This means that the seller must have paid the auto loan in full. The car finance firm owns the car until the auto loan is repaid and a person cannot legally sell a car he or she does not own.

People who do not research the history of the vehicle they are purchasing may buy a car with outstanding finance. This means they are not actually the owner of the automobile. It also means the car could be repossessed if the loan balance is not paid. The last thing many car buyers want to do is pay off car loans after they have already paid the sellers for the vehicles.

The National Consumer Agency reported that anyone selling one of these cars may be in breach of the agreement with the finance company. Many agreements do not permit the vehicle to be sold until the auto loan has been repaid. The loan follows the car, which entitles the financing company to recover the automobile to repay the loan.