How do I realise if a car is being owned by the owner or he/she is still paying for it via bank???

Question

I don't know the exact terms therefore I can't explain any better than this.

I know that cars can be bought in 2 ways from a dealer. I am talking about new cars. One way is to pay cash and the other is to buy it through a bank over a longer perion, Leasing, if I am not mistaking.

I wanna know how can I realise which is which. Is there something special about the number plate?

Or how do sellers refer to a car that is still under payment??

Please help!
Thank you!

Answer 1

it says it on the deed who is the actual owner. if you see a bank's name, it's the bank. however, actual car dealers don't have deeds for new cars, they get mailed after the first sale.

regarding another part of your question, getting a loan from a bank is called "getting a loan." leasing is something totally different. leasing is when you are renting a car for a limited amount of time, with an option to buy at the end of the lease. if you choose not to buy, then you return the car.

you will never see a car at a dealer that is owned by a bank unless it is under consignment.

as a general rule, buying a new car is almost exactly like buying paint: you choose the color you want, use a little bit of it to see if you like it, then use it. the dealer will usually arrange the loan right there at the lot (thanks to the internet, they can pull credit reports instantly.)

Answer 2

I'm assuming you are buying a 2nd hand car and want to know that it is not still being paid for, right?

There is nothing on the car that shows this, but I believe if you contact the AA (I'm also guessing you are in the UK) they will come with you, check the vehicle over and conduct the necessary checks for you. Or you could go to a 2nd hand car dealer, who would do the checks first anyway. Also, we have a publication in Devon called the Auto Trader, which is basically a magazine full of cars for sale, and I remember reading about this kind of thing at the front of it, so if you have something similar in your area check it out.

Sorry, I'm not an expert but hopefully this will help a bit!

Answer 3

You ask the owner. There's nothing special about the number plate.

Leasing is renting, pure and simple. At the end of the lease, the car goes back to the lease company or you can buy it from them.

Getting a loan is called financing. This is usually referred to as "hire-purchase" or 'HP' in the UK. Once you pay off the loan, you own the vehicle free and clear.

If you pay cash, you own it free and clear from day one.

Answer 4

You can get a H/P check done on the car.

If you're buying from a dealer they should already come with a HP check, and make sure you get the check in writing.

if you're buying privately, just go on the web and do a search for hp checks on cars. There's loads of companies that do it for a small fee !

Answer 5

There isn't any way for a third party to tell you - it's private information if the vehicle financing isn't paid off, or if it's leased.

HOWEVER. If you have a friend at the DMV willing to break the privacy laws for you, you could have them look up the title. It will tell you if there is a lein on the vehicle.

Answer 6

It's illegal to sel a car if you don't own it outright. I know this doesn't help, but maybe a credit checking agency could be of asistance (at a price).

Answer 7

look at the or/cr, if it says encumbered near the bottom then the original is still in the bank

Answer 8

You need to do a hpi check

Answer 9

If you are in the UK ..do a check, Go to: http://www.hpicheck.com/newfrontend/?supplier=goog