Understanding reports
My report says finance owing — what now?
Four minute read · updated 12 Aug 2026
Do this first
Do not hand over money until the seller shows written confirmation from the lender that the agreement is settled. Outstanding finance stays with the car, not the seller.
What the flag actually means
A finance flag means a lender has registered an interest in the vehicle — usually a hire purchase or conditional sale agreement that has not been settled. The debt is attached to the car, not to whoever is selling it.
Why it matters when you buy
If you buy a car with outstanding finance, the lender can in some circumstances repossess it even though you paid the seller in good faith. You would then be chasing the seller for your money.
What to ask the seller
Ask which lender holds the agreement, ask for the settlement figure in writing, and ask them to settle it before the sale completes. A straightforward seller will have this to hand; hesitation is the answer to the question.
If the seller says it is already settled
Registers can lag by a few days. Ask for written confirmation from the lender dated after the final payment, and re-run the check before you hand over money — a re-check on the same registration is free within 30 days.
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