What is a HPI and why would I need one?

A HPI is a Hire Purchase Interest check and has been used by Car Dealerships for decades as a way to check the existing information of any vehicle before they commit to purchase it.

It's extremely important that this check is carried out because it could save you thousands of pounds.  If you purchase a vehicle that already has existing finance, even if you've handed over £10,000 for that vehicle, you'd have no legal right to the vehicle.  As the finance company own the vehicle.

There are lots of companies that now offer this service to the general public for a nominal fee, not only does this check detail any existing finance, but also includes other important details.

Here, we'll explain everything that the vehicle history report would include.  

Did you know that it’s illegal to resell a car that still has outstanding finance?  By checking the car loan status, you can prevent paying for a vehicle that you won’t own.  Ensure that any finance is settled, and you have full confirmation of this before continuing with a car purchase.

A vehicles mileage is recorded on a linked database each time a vehicle undergoes its annual MOT.  By recording this information, it reduces the ability to “clock the miles” (rolling back a vehicle’s mileage), and any discrepancy is highlighted.  Only buy a used car with genuine mileage.

Crucially a vehicle report will immediately indicate a warning if the vehicle has been reported as stolen.

There are 4 separate categories, these are A, B, S & N.  This highlights the degree of the damage that was done to the vehicle.  Have the repairs been completed to a good standard, after all an insurance company deemed the vehicle not worth it to repair. 

Vehicles that were previously categorized as an insurance write-off are usually worth less and can cost more to insure.

How many previous owners has the vehicle had?  A vehicle with one previous owner, usually instills confidence in its reliability and gives an impression of the vehicle being previously cared for. 

A vehicle that has changed owners 4 times in 2 years is likely to ring alarm bells, is there an ongoing fault with the vehicle that someone has been unable to diagnose and repair?

A full car check will include the make, model, colour, chassis/vin and registration number. 

All information that will be detailed on the logbook.  Do they match? 

You can check the cars chassis number to make sure that it’s not a clone that you're buying. 

The chassis number is usually located on the car in the following areas: -

• Above the driver’s dashboard viewable through the windscreen
• Under the bonnet around the engine housing
• Inside the door pocket

Full details of when and where the car was registered will also be viewable. 

Imported cars are usually worth less than UK registered vehicles and can sometimes cost more to insure.

Don't be alarmed if the report highlights a plate change as many car drivers choose to have a private plate on their vehicle nowadays.

Car tax is no longer transferable between owners, so you will need to tax any used car that you buy immediately before you can drive it on public roads. 

The MOT information not only shows you if the car has a valid certificate but records information of previous MOT’s, which is particularly useful.

You'll be able to see if a vehicle has previously failed an MOT, what it was for and any advisories. 

You may think twice about buying a vehicle with the same advisory over the last 2 or 3 tests if it hasn't been repaired; as it’s highly likely that this could require maintenance or repairs at a cost in the future.

You can access many online car history reports, the cost between companies vary dramatically. We’d recommend our readers obtain the full report for the cheapest price, get your full HPI check now.