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Rise in cars for sale with finance owing - Cartell.ie 24.07.17

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.”
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