Motor finance fraud rose by 17% in the first three months of the year compared to the first quarter of 2010, says the Finance & Leasing Association, which is urging retail buyers to make provenance checks.

One in three vehicles checked reveal some form of hidden history, either financial or mechanical, but three out of five people do not make checks, says the FLA.

Paul Harrison, FLA head of motor finance, said: “Some people commit finance fraud inadvertently, perhaps by selling a car still on finance, but others know they are acting illegally. Either way, it could be reclaimed by the finance company.”

Last month, the FLA supported Car Crime Awareness Week and issued tips to help retail buyers avoid being caught out.

The Association of Chief Police Officers told retail buyers: “Make sure you’re not a victim of someone else’s ignorance or, worse, criminality.”