Not everyone can afford to buy a new car. With a car loan it’s a little simpler - you need to pay a certain amount every month for several years. But unforeseen situations happen when a person does not have money to repay the loan.
Sometimes people indicate that the car is on credit and sell it at a reduced price. But there are also frequent cases of fraud: the owner knowingly sells a pledged car. That is why before purchasing it is important to carefully check whether the car is a credit car or not.
What are the risks of buying a credit car?
When purchasing a vehicle (vehicle) on credit, collateral documents for the property are drawn up between the borrower and the bank. They act as a guarantee of compliance with all requirements of the lender - i.e. If the borrower is unable for any reason to pay the money stipulated by the contract, the financial institution has the right to seize the property as compensation.
At the same time, there is one unpleasant moment for those car owners who unknowingly bought a credit car. The vehicle is the subject of collateral, so if payments do not arrive to the lender’s account, according to the law, the financial institution has every right to confiscate the car from the real owner, even if he was not the one who took the loan.
There is no point in proving that you are not a borrower. Even through the court this is unlikely to happen - in most cases it takes the side of the financial institution, since non-payment is obvious, and you cannot argue with the facts. Therefore, we want to tell you how to check your car for credit and not fall for the scammers.
How to determine credit vehicles?
Several signs that indicate that the car was taken out on credit that has not yet been repaid:
- Reduced price - most often, the owners of such vehicles try to sell it quickly, so they reduce its real market value by 10-15% (sometimes more) under various pretexts (I’m leaving, urgently need money, etc.).
- PTS - with a loan, the passport for the vehicle, as a rule, remains as collateral with the lender. If a person sells a car as a duplicate, it is better to refuse such a purchase - in addition to the great risk of buying a credit car, it will bring you many other troubles. But a duplicate is also issued in cases where the original document is lost.
- Purchase and sale agreement - when purchasing a car on credit, this is reflected in the document, and if it was purchased less than 2-3 years ago, there is a high probability that the entire amount has not yet been repaid.
- Equipment - few people will decide to improve anything if the loan for the vehicle has not yet been paid off.
There are several ways to check whether a car is credited or not:
- Through the central catalog of credit histories.
- At the official dealership.
- Using the online service "AutoHistory".
Checking through the central directory
The Central Credit History Directory works with all credit history bureaus. You can make a request to this organization once a year. But for this you need to know the passport details of the real owner of the vehicle. You will not be provided with detailed information here, but you will be able to find out that the person has a loan, the collateral for which is the car he is selling.
The information in this directory is publicly available, and only lenders have the right to change or delete data. In most cases, a response to your request will be sent by email within 24 hours.
But when checking a car for credit using this method, consider the following:
- There are cases when the owner is not shown in the credit history directory.
- A person may have a second loan that has nothing to do with vehicles.
The most important thing is to keep in mind that if the vehicle seller refuses to provide his data to the credit center, this is clear evidence of the existence of collateral.
Determining a credit car through a dealership
You can try to check the car for credit through the dealership where it was purchased. But this is not easy to do, since all data is confidential and is not provided to outsiders. The only way out is to negotiate with one of the employees, who will check the information about the method of selling the vehicle.
Also, some car services do not sell cars on credit, but there are practically none left today. Therefore, this method can be considered irrelevant.
Online check by VIN code
The easiest, fastest and least expensive way to find out whether a car is on credit or not is to check by VIN code via the Internet. To check using the AutoHistory online service, the participation of the current owner of the vehicle, his passport data or any other information is not required. All you need is your vehicle identification (VIN) or registration number and a few minutes of time.
Verification procedure:
- Enter the VIN code and click “Check” - the system will issue a short report from which you will learn about the availability of information on a specific car in our database.
- To receive a full report, you need to pay for the service (it is inexpensive) and provide an email.
- Within 1-15 minutes, the most informative and reliable report with the operating history of the vehicle will be sent to your email address.
Example from the report:
In addition to the credit history, the report reflects data on restrictions, participation in road accidents, work in a taxi, actual mileage, equipment and much other information useful for choosing a used car.
The verification is carried out using official, unofficial and commercial sources, which guarantees the receipt of the most complete information on the vehicle.
The database contains information on more than 30 million cars registered in the Russian Federation.
Check cars for credit quickly using a computer or any gadget with Internet access through the AutoHistory online service. Enlist the support of used vehicle professionals and you are guaranteed to buy the car of your dreams without hidden problems and any restrictions!
In 2016, according to the National Credit Bureau, the number of cars purchased on credit increased by 40%. Today this figure continues to grow. The owner does not have the right to sell a car on credit, but “the law is not written to scammers.” In order not to run into problems when buying a credit car, check the selected options on Autocode!
Signs of a credit car
Documents will tell you that cars are being sold dishonestly. For example, if a car was purchased on credit, you will see the name of the creditor organization in the CASCO policy. It is indicated there until the borrower pays off the debt.
What suggests a catch:
- The technical passport has been issued for the second time, and the mileage of the car is minimal;
- Lack of original PTS;
- Low cost of the car for no apparent reason;
- The car is less than three years old. The car loan is repaid for a maximum of three years;
- The machine is equipped as “exclusively from the factory”.
If the above points are noticeable when purchasing, then there is reason to think about it. But personal observation can be deceiving. Therefore, to find out for sure whether the car is on credit, use the Autocode online service for checking by vin and state number.
Why do you need a car credit check?
Loans are not as scary as lenders.
Denis Lukin, auto expert, Remontista company
“When buying a credit car, a person purchases a bank item. And if the credit institution is not paid, it will find ways to get its money back. In this case, “yours” is precisely the car. One day the collectors will come and just take the car. And it will take a long time to prove in court that you are a bona fide buyer.
.jpg)
If the fraudster who sold the car is not found, the chances of compensating your costs for purchasing the vehicle will be halved. It’s difficult to take the deposit from the bank... number. It’s a shame to give money for a car, and after a while be left without money and without a car.”
What happens if you don't check the car before buying?
On Forgiveness Sunday I called the bank... The loan was not forgiven.
Evgeniy, bought a car as collateral from the bank
“About five years ago, a letter suddenly arrived from the bailiffs. I started looking into it - it turns out that a criminal case has been opened against my property. Namely a car. I purchased the car three years earlier from a private individual. The original PTS was handed over to us. When the traffic police did an inspection, the inspector verbally said that the car’s history was “clean.” It turned out that the previous owner of the car took out a cash loan from Rusfinance Bank, indicating the vehicle as collateral. After the deal with me, she successfully disappeared. He sued her. The fraudster was never found, the car was recovered.”
.jpg)
Anna, bought a car as collateral from the bank
“In 2014, I was choosing a car for myself and found an attractive option on one of the websites. The salesman and the young girl played the young couple perfectly and made a very pleasant impression. The presence of a duplicate title was explained by the fact that the original was lost during the move. But supposedly despite this, there is a long queue for cars. Overall, the car was in good condition and I made a deal. It later turned out that the former owner took out a bank loan secured by the car. It’s good that the contract included a condition on the sale being free from the rights of third parties. A criminal case was opened, and it took a long time to win back the car.”
Why is verification via Autocode necessary?
Within 5 minutes the site provides all the information about the car online. This includes PTS data, registration history, mileage, participation in an accident, restrictions, whether the car is listed as a loan, pledge, stolen or wanted, whether it has been seized and until what date the insurance is valid.
What are the advantages of checking through Autocode:
- Possibility to check a car only by state number;
- Possibility to check the car for credit by VIN;
- Data for the report is taken from official sources - the register of pledges in the Federal Notary Chamber, the traffic police database, the vehicle registration database, etc.;
- The check takes only 5 minutes;
- The mobile application allows you to find out the history of the car directly during the transaction.
If you don’t find out anything about the car you are purchasing in advance, then the purchase can turn out to be the worst - the loss of the car and money. You will have to attend trials and prove your good faith. Autocode will check the desired car online in a timely manner, preventing an unwanted transaction and saving you from bad consequences.
The databases are state-owned, any person has access to them, the main thing is that they have the data that is required. In the first case, you need the car number or body number. Here there is information about all cars that were seized by judges and investigators; there is no information about a pledged car in this database. It contains, in particular, information about cars issued by social security authorities.
Dear reader! Our articles talk about typical ways to resolve legal issues, but each case is unique.
If you want to know how to solve exactly your problem - contact the online consultant form on the right or call by phone.
It's fast and free!
If there is a car and someone is trying to sell it, then you should refuse to buy it
In the case of the bailiffs’ website, the situation is somewhat different. It is not the car itself that is checked, but its owner.
It doesn't matter if it's an organization or an ordinary person. If a case has been opened, there is information about it in the database. If the property is sold under the control of a bailiff, and the money will be transferred to the appropriate account to pay off the debt, this is one thing, but if the transaction is rushed, nothing is said about the arrest, you should be careful.
The electronic database is a convenient thing, but it does not always work properly, and the bailiffs do not always enter all the data on time; the problem of data completeness also applies to the Ministry of Internal Affairs database.
The check can be carried out:
- By opening the FSSP or traffic police website on the Internet.
- Find the services sections.
- Fill in all the required fields step by step.
In the case of the Ministry of Internal Affairs website, you only need to enter the vehicle registration number or license plate number.
The bailiff resource is more complicated:
- You must indicate the subject where the case was opened (republic, region, federal city).
- Address of the debtor person or organization.
- The system asks you to enter the number of the enforcement proceedings.
What is needed for verification
Rarely does anyone feel confident when buying a car that they will not be deceived and the item is not under arrest or wanted; databases, as we know, do not always reflect the current situation:
- If the car was purchased from a bank, you should visit the institution so that the owner receives a certificate stating that the bank has no complaints.
- It’s more complicated with bailiffs; production can be opened in any department of the country, but no one will give the buyer information.
- You need to go with the seller to register the purchase with the traffic police, otherwise there is a risk of fraud, and then you won’t be able to find either the seller or the money.
The easiest way to buy a pledged car is that the car is transferred under the control of the bank or in a special car dealership that sells pledged cars. The owner of such a car often finds a suitable buyer himself, but again, everything goes under bank control.
Who and in what cases can seize a car?
According to the law, a seizure is considered a prohibition to perform any actions with property. This mainly concerns real estate, cars, securities, and money in accounts. This is done in order to prevent the loss of property that was transferred to the plaintiff in a lawsuit, by a judge’s decision, or that was used for sale during enforcement proceedings.
Property is seized:
- Judges in the process of considering civil cases.
- Bailiffs involved in the execution of court decisions.
- Investigators conducting a criminal case, with a view to the possibility of confiscation of property in the future or its use for compensation for damage.
How does the arrest procedure work?
The investigator or bailiff makes a decision.
It describes in detail the characteristics of the car:
- Brand.
- Color.
- Number (including body numbers).
- Year of issue.
All data is copied from the car’s passport and certificate of ownership. Also, the investigator or judge has the right to make a request to the traffic police, which is responsible for maintaining the car register. It contains both technical data and information about the owner. There are enough of them so that there is no confusion and no one else gets hurt.
In the case of a judge, the procedure is similar, there are some differences in a criminal and civil case. In a civil case, an application for seizure of property is written by the plaintiff or his representative or prosecutor. An application is a request to secure a claim, and an arrest is a way or one of the ways in which this is asked to be done.
The judge decides the issue of arrest either together with the receipt of this application to the court with a claim, or, if a criminal case is transferred to the court, the judge decides this issue separately at the request of either the victim or his representative, the prosecutor.
The judge needs specific grounds for seizing property; if they are not specified, the judge will issue a refusal. This kind of application can be submitted more than once, and, in particular, if there are some new circumstances.
Another type of car seizure is the pledge of property for a loan taken from a bank. In this case, the pledge is formalized by agreement, both parties agree to this, the participation of the state here is only formal: The data is entered into the appropriate register.
How to remove a lien from a car
The main way to remove a seizure from a car is through the courts. The seizure can be lifted by filing a claim. A regular claim in which a request is written to lift the seizure of property (a specific car indicating its specific data). If the arrest was made to comply with the decision of the arbitration court, then the claim is filed in the appropriate court, also with the district court.
Magistrates most often do not deal with such cases due to the price of the car exceeding 50 thousand rubles.
If the arrest is imposed by the investigator, then the complaint can be submitted either to the prosecutor or to the court. The prosecutor may refuse this, so it is easier to go straight to court (such statements are also reviewed by district judges).
How to write a statement
It states:
- The name of the court to which the papers are sent.
- Data of the applicant (person or organization, in particular, name and address).
- The circumstances and evidence confirming the circumstances are stated.
- Appendix – description of the list of attached papers.
- Date and signature; a signature is considered to be the indication of the person’s last name, first name, patronymic and signature.
- Receipt for payment of state duty.
The submission of documents is carried out either by the interested person or his representative. If the papers are submitted on behalf of the organization, a power of attorney signed by the director or other person entitled to do so is attached to the person submitting the power of attorney.
The power of attorney has the right to sign the one who is given the right to do so by the charter. An official who has the right to do so without a power of attorney can also sign.
Representation of an ordinary person occurs on the basis of a power of attorney.
The circumstances are either a violation of the law (there was no reason to seize the car) or a change in circumstances (the debt has been paid).
Lien arrests are also removed through the court in the case when the car is sold to another person, but he cannot register ownership with the traffic police due to the presence of an arrest.
Participants in the process will be:
- Interested person (for example, a new owner).
- The person to whom the owner or former owner owes money.
- Office of the FSSP, as well as the bailiff.
It is necessary to prove the fact of refusal to lift the arrest only in the case of a bank. It is enough to write a letter and have a receipt in hand proving that the letter was sent and a notification with a mark on acceptance or refusal to accept the letter. The judge makes a decision on the application in the form of a ruling. Usually everything is resolved within one court visit.
What are the risks of buying a seized car?
The consequences are different, but there is something in common: the car is confiscated as soon as this becomes clear to the traffic police after checking the documents. If the item was sold illegally, then in case of fraud, it is quite possible to open a criminal case.
If the injunction was violated and a transaction was carried out, there is also the option of criminal liability for violating the judge’s decision.
If there was no fraud or gross violation of the injunction, the buyer loses both the money given to the seller and the car. You can try to defend the rights to property in court, regain it and lift the arrest, but whether there will be a result depends on the circumstances.
The judicial authorities and the FSSP of Russia have the right to seize the property of the defendant or debtor in order to ensure the execution of a court decision (Article 80 of the Federal Law of October 2, 2007 No. 229-FZ "").
In order not to find yourself in an unpleasant situation by purchasing a seized car, we recommend that you check the vehicle before concluding the transaction. Recently, the traffic police announced a new useful online service that allows you to obtain information about the arrest of the car you are interested in without visiting the traffic police.
To do this, you need to go to the official website and enter the VIN code of the car (you can find it in the Technical Equipment Passport or in the Certificate of Registration of the technical equipment for your car). Then, from the list below, you need to select the “Check for restrictions” function and click on the “Request verification” button by entering the security code that appears (the numbers indicated in the picture).
If you have correctly entered all the necessary data, then on the next page you will see information about the presence or absence of a prohibition on carrying out registration actions with the car.
