Motor Industry News
MyCarCheck.com - the UK’s No.1 consumer vehicle data provider - has saved millions of people from making an expensive used car mistake. The company reports a ‘dramatic rise’ in checks flagging up finance issues during 2013 and says this trend is only likely to increase during 2014.
Oil tycoon J. Paul Getty once advised: ‘If it appreciates, buy it; if it depreciates, lease it’. Ever more people are applying this logic to car buying and entering into Hire Purchase (HP) and Personal Contract Purchase (PCP) agreements.
Figures from the Finance & Leasing Association (FLA) show that PCP grew by 54% in the new car finance market and 46% in the used car finance market in August 2013 compared to the same month the previous year. By contrast, HP grew by just 1% in the new car market and by 21% in the used car market.
Roger Powell, Divisional Head at CDL Vehicle Information Services (which owns MyCarCheck.com), commented: “PCP is the mover and shaker in UK consumer car finance and this trend is having a significant impact across the automotive industry. Carmakers used to run glossy adverts about how sleek their new models looked or how amazing a new technology was. Now they often lead with the PCP cost: You can drive this car for this much per month.
“Vehicle manufacturers keen to keep people buying during the economic downturn have been offering very attractive monthly rates on new cars. Consumers have been getting great deals and it has helped new car dealers to weather the economic storm. Following this success, PCP is now taking off in the used car sector too.
“The key thing for used car buyers to recognise is that the registered keeper of a vehicle – the name on the V5C form, the logbook – is not necessarily the legal owner. Unlike a personal loan, under both PCP and HP the finance company often retains legal ownership of the vehicle.
“Unfortunately, many motorists presume they are free to sell the vehicle on so long as they keep up the monthly payments. They are not. The car is not theirs to sell and doing so is illegal. Then there are criminals who do this kind of thing deliberately.
“Our business is all about providing up-to-date information to help second-hand car buyers make the right choices. This used to be about confirming if a car had been written-off, stolen or clocked. Today, a major part of what we do is checking that vehicles don’t have a finance agreement registered. We are one of only a handful of companies in the UK to offer this service.
“Last year, we saw a dramatic increase in checks flagging up that cars still had money owing on them. This is important because honest consumers can be left out of pocket if the finance company seeks to recover their asset. There is also the possibility of the new ‘owner’ being pulled by the police if the payments dry up and the finance company lists the vehicle as stolen.
“A car is usually the second most expensive thing you buy in your life, after a house. You wouldn’t buy a house without getting a survey, so why buy a car without spending a few pounds checking the history and value?”
Over the last couple of years, MyCarCheck.com, MyMotorCycleCheck.com and MyTextCheck delivered around 4.5m consumer checks including those via AutoExpress and WhatCar?.
We use up-to-the-minute data from the Police National Computer (PNC), the Driver and Vehicle Licensing Agency (DVLA), the Association of British Insurers (ABI) and major finance houses including Lloyds TSB and Santander.
Our information is trusted by the UK's leading brands. MyCarCheck.com’s parent company, CDL Vehicle Information Services, performs around two million look-ups a week for companies including CompareTheMarket, Confused.com, Go-Compare, Moneysupermarket, Swiftcover and Tesco Compare.
Know what you’re getting into: MyCarCheck.com