History checks by automotive trade companies between April and June this year show that 26.1% of used cars had outstanding finance.
According to the figures from information services company Experian outstanding finance continues to be the prevalent risk factor car dealers have to manage when acquiring used vehicles.
Other risks identified by Experian’s AutoCheck included ‘written offs’ and ‘stolen vehicles’.
Of the vehicles checks, 3% were recorded as ‘written off’ whereas three in every 1,000 vehicles checked, were identified as stolen.
The total number of vehicles being checked by motor retailers using the provenance tool Experian AutoCheck in Q2 2012 increased by 13% compared to the same period last year.
These figures demonstrate the increasing importance car dealers’ are placing on managing risk, which in turn helps to also highlight levels of risk dealerships are exposed to when acquiring new stock.
Andrew Ballard, principle consultant at Experian Automotive in the UK and Ireland, said: “With more than a quarter of vehicles offered to them identified as having outstanding finance, car dealers cannot afford to take any chances with due diligence.
“Knowing a vehicle has outstanding finance is a risk, but this data also empowers dealers with insight allowing them to factor that into their dealing with the vehicle owner.
“By understanding the risks they are exposed to, ensures dealers are better equipped to make buying decisions.”