Before you scrap your car, it is important to confirm there is no outstanding finance on it. Scrapping a financed vehicle without the finance company’s consent could have serious legal and financial consequences.
Why Check for Finance?
Many used cars are bought with outstanding finance that the new owner may not know about. If you bought a car privately and the previous owner still owed money on it, the finance company technically owns the vehicle. Scrapping it without settling the finance could be considered theft or fraud.
How to Check
The most reliable way to check is through an HPI check or similar vehicle history service. These search finance databases maintained by the major lenders and will tell you whether any finance agreement is registered against the vehicle. A basic check costs around 10 to 20 pounds and gives you peace of mind.
Free Alternatives
The DVLA offers a free vehicle enquiry service that shows basic vehicle information but does not include finance checks. Some finance companies will confirm whether they hold an interest in a specific vehicle if you contact them directly with the registration number.
What If Finance Is Found?
If there is outstanding finance, contact the finance company to discuss options. You may need to settle the remaining balance before scrapping. If the car is worthless and the finance exceeds its value, you may be able to negotiate a settlement figure lower than the full amount. The finance company would rather receive something than nothing.
Our Process
When we process vehicles at our scrap yard, we carry out standard checks to ensure there are no outstanding finance markers or stolen vehicle alerts. This protects both us and you as the seller.
Need to scrap your car? Get a free quote today. Free collection across Edinburgh, Dundee, Falkirk, and all of Scotland.