Drivers warned of rising vehicle fraud

Motorists are being urged to look out for dangers on the road, and not just those that could put their car insurance premiums at risk.

Figures from the Finance & Leasing Association (FLA) have recently shown a rise in the number of people fraudulently selling vehicles they do not own to unsuspecting motorists.

Vehicle data firm HPI is warning drivers to be on their guard because if they purchase such a vehicle, they stand to lose the auto as well as the money they paid for it, which could also include tax and car or van insurance provisions made.

"Buyers need to be aware that some vehicle history checks do not include finance information, which leaves them vulnerable to any type of finance fraud," advised Nicola Johnson, consumer services manager for HPI.

She added that obtaining a receipt for the purchase will not offer protection to the buyer if they later discover there is outstanding finance on the vehicle.

The FLA discovered that almost 40 per cent of motor fraud cases in the third quarter of 2009 involved people selling on vehicles that still had outstanding finance against them.

And HPI states that one in four of all the cars it checks is subject to an unpaid finance agreement.

The firm urges motorists to carry out thorough checks before committing to a purchase.

Earlier this month it emerged that stolen log books, also known as V5s, in circulation and being used by criminals to clone stolen cars.

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The views expressed within the article are entirely those of Adfero Ltd and are not those of the BGL Group