James Carter had been searching for a used car for weeks, usually after work, because his old hatchback was becoming unreliable and he needed a replacement soon. He wanted something newer for everyday trips, without stretching the budget.
One listing stood out, a clean-looking family car priced at £8,950 with mileage that seemed fair for its age. The advert mentioned regular servicing, and the photos showed a clean interior with no obvious damage.
Because it was a private sale, James Carter knew it was up to him to check everything properly.
The seller sounded friendly on the phone and said the car was being sold because he had changed jobs and no longer needed two cars. James booked a viewing for Saturday morning.
Before he travelled, James copied the registration number into a history check, because he had learned that doing it early can prevent wasted journeys.
He used My Car Reg Check to run the report, and most of the details matched the advert, including the model and basic vehicle information. Then a warning appeared that made him slow down and read carefully.
The report showed outstanding finance recorded against the car, which meant a finance agreement was still linked to the registration. It also explained that while a car can be sold during an agreement, the finance company may still have a legal interest until the balance is settled.
James Carter did not claim to be an expert in the law, but he understood the practical risk in plain terms. If the finance was not cleared, a lender could have grounds to repossess the car, and he could be left chasing the seller for money afterwards.
That was a serious problem, because the seller was a stranger and the payment would be large. James pictured paying in good faith, driving away, and later learning that the agreement had not been settled as promised.
He still decided to attend the viewing, but James Carter planned to ask direct questions and to stay calm, and he would not hand over money without written proof that the car was free to sell.
On Saturday, the car looked good in person and drove smoothly on a short test route, with no warning lights on the dashboard.
Back at the house, James asked to see the service book and receipts, and the seller produced a folder that looked organised. It was reassuring, but it did not answer the outstanding finance warning.
James Carter mentioned the report in a friendly way and asked whether the car was on hire purchase or another agreement. The seller looked surprised at first, then admitted the car was still being paid off, and he expected to clear it once it was sold.
James listened because he understood that this could happen without bad intent. He also knew that a reasonable plan can still fail if a payment is delayed or a transfer gets stuck in processing.
He asked the seller to show the current balance, and the remaining amount was around £6,400. That figure changed the deal completely, because most of James Carter’s £8,950 would be needed to settle someone else’s agreement.
It also meant James would be relying on the seller to do the right thing quickly and to do it in a way that could be proven later. The seller suggested a simple solution. James could pay him, and he would settle the finance straight away.
James Carter did not accept that approach because once the money left his account, he would have very little control over what happened next.
James asked whether they could complete the sale in a safer way, with proper verification. He explained that the usual route is to get an official settlement figure from the lender, pay the settlement in a traceable way, and keep written confirmation that the agreement is cleared.
The seller said he could call the finance company on Monday for a settlement letter and a final amount to pay. He also said it might take a few days for the system to update, which could leave the car showing as financed for a while.
That delay mattered because it created a gap where James could pay for the car, but the record might still show finance outstanding. In that gap, James would carry the risk, not the seller, and any dispute would be harder to untangle.
James considered leaving a deposit and returning later, but he decided against it because a deposit still ties him to the deal and can lead to arguments if the seller changes his mind.
He also thought about paying the lender directly, which is sometimes the safest option, but he did not have the lender's details to hand. James did not want to rush a complex payment on someone’s driveway, especially when he could not confirm the exact settlement figure.
So James Carter stepped back from the purchase. He thanked the seller for his time, explained that he could not buy until the finance was cleared with written proof, and said he would keep looking.
On the drive home, James felt disappointed because the car had driven well, but he also felt relieved. The finance warning had protected James Carter from a situation that could have turned into a costly and stressful dispute.
Later that week, the seller messaged to say he had paid the finance off and sent a screenshot from his app as evidence. James replied politely and asked for a settlement letter or email from the finance company, because screenshots are easy to misunderstand and hard to rely on. James also said he would run a fresh history check once the seller had the official confirmation.
A few days passed, and the seller still did not have the lender’s written proof, so James decided not to wait and hope the paperwork arrived.
He moved on and chose a different car that did not have finance recorded against it, and the purchase process felt far more straightforward. When James thought back to the first car, the lesson was clear. A vehicle can look perfect, and the seller can seem honest, while a legal and financial problem sits quietly in the background.
The finance flag did not prove the seller was trying to scam him, and James never treated it that way. It did prove that he needed proper confirmation before buying, because the consequences would have landed on him if anything went wrong.
