Just over a quarter of cars, 26.1%, checked by car traders were confirmed as having overdue finance, according to the quarterly report for Q2 by Experian.
The figure is slightly down from the 800,000 vehicles, 27% of just over three million checked, found to have outstanding finance in Q1 2012, up 4.8% on the opening quarter of 2011.
Go deeper with GlobalData
Just over a fifth of cars found to have outstanding agreements in the second quarter were on hire purchase, ahead of all other finance arrangements.
The global information provider added that outstanding finance continued to be the biggest risk to be managed by car dealers when acquiring used stock, ahead of write-offs, which accounted for 3% of stock, and stolen vehicles, 0.3%, between April and June 2012, almost exactly the percentages as Q1 2012.
Experian also saw the total volume of vehicles checked by retailers using the company’s AutoCheck provenance tool increase by 13% compared to Q2 2011.
In a statement, Experian said such figures "demonstrate the increasing importance car dealers are placing on managing risk" and highlighted the risks faced in buying used vehicles.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFurther comment and analysis from Experian will be published in the October issue of Motor Finance magazine.
