Car finance scam that could land millions of drivers out of pocket

Drivers are being warned about a new scam that could leave them out of pocket.

In the UK millions of cars are being sold with outstanding finance.

Motorists purchasing used cars are being warned that they lose their car due to a type of fraud.

Unscrupulous sellers are using a type of fraud which could get worse, warns experts.

According to a report, in the first four months of the year, a total of one in three cars were sold with outstanding finance.

This means that the buyer could lose the car and any money they paid out for it.

Used car buyers could, therefore, be lumped with a hefty bill or risk losing the vehicle they have purchased altogether if it has outstanding finance on it.

Experts from Cap HPI warned that selling a car with outstanding finance is a form of fraud if the buyer is not told.

Fernando Garcia, head of consumer at HPI said: “Buying a car with outstanding finance can land the unwitting buyer in trouble.

“The debt stays with the vehicle not the borrower.

“Even if a buyer bought the vehicle in good faith, if the finance hasn’t been settled then the lender could repossess the vehicle, meaning you could lose the car and the money you paid.”