Buyers selling cars they don't own

More people are selling cars before they've completed the finance payments on the vehicle, an industry body has said.

The Finance and Leasing Association (FLA) said there'd been an increase in the number of cars being sold with outstanding finance - leaving buyers vulnerable to losing the vehicle and the money they paid for it.

It said potential buyers must check the details of individual models before handing over any cash if they want to avoid becoming a victim of conversion fraud.

Almost 40 per cent of all motor fraud cases in the third quarter of 2009 were people selling cars that had outstanding finance against them, according to the FLA.

Paul Harrison, Head of Motor Finance at the FLA, said: "The FLA advises used car buyers to always conduct a vehicle check to ensure it is free from finance. A car with outstanding finance can be illegally sold without a finance company's knowledge. If a finance company is shown on the check as having an interest in the car, be sure to contact them to check whether it is possible to go ahead with the purchase."

Get a car insurance or home insurance quote now.