Purchasing a used car carries the risk of encountering an unscrupulous seller or fraudster. Before purchasing, it is important to check the car not only for its technical condition, but also for its legal purity. You need to make sure that vehicle is not pledged to the bank or seized by bailiffs. It is illegal to dispose of such a vehicle. That's why new owner may lose the car and the money spent on its purchase.

Features and signs of collateral

The car becomes the subject of collateral when applying for a car loan from a bank. The machine is a guarantee of repayment by the borrower of the debt, full fulfillment of financial obligations to the bank and timely payments.

When concluding an agreement, the original passport for the vehicle remains with the bank. It is returned to the borrower after repayment of the loan. The absence of a title prevents the conclusion of transactions for the disposal of the car. Fraudulent actions consist of falsifying the title and subsequent sale of the car. As a result of such a transaction, debt obligations are assigned to the new owner or the bank confiscates the pledged property. Usually, the buyer learns about the availability of a loan for a car from a credit institution as soon as the first late payment appears. The bank only cares about repaying the debt, and the fact of your good faith and ignorance of the existence of a loan will have to be proven in court.

You can detect the fact of a loan or pledge on a vehicle or its signs during the initial check of documents:

1. Information about the lending bank in the CASCO policy. a prerequisite when buying a car on credit. The law establishes the obligation of the pledgor to insure the pledged property. Therefore, if you have such a policy, it is important to pay attention to the information contained in it. The bank is indicated as the beneficiary, which will cover its losses in the event of the destruction of the car or its theft.
2. Lack of original vehicle passport. If the PTS is lost or damaged, the traffic police will issue a duplicate of it. A note about this is made on the newly issued document. To obtain a duplicate, it is enough to submit an application to the traffic police. In this case, the original itself may actually be in the possession of the mortgagee of the car.
3. Not much time has passed since purchasing the vehicle. This period is a period of up to 3 years of ownership. Typically the loan is issued for a period of 3-5 years. Therefore, before this period expires, there is a high probability that the debt on the car has not yet been repaid and the vehicle is pledged. When little time has passed since purchasing a car, it is important to make sure that the seller does not owe the bank.
4. Low price. Before buying a car, you need to study the price range of the secondary market. A price that is too low indicates the need for urgent sale of the vehicle. The reasons for urgency can be various circumstances, ranging from financial difficulties to the desire to get rid of the credit burden.
5. Lack of primary documents for the purchase of a vehicle. The owner’s refusal to present the car purchase and sale agreement may indicate his deliberate concealment of the fact of the purchase on credit. This should alert you if the car is under 5 years old. When providing the primary document, you should pay attention to the calculation procedure. The presence of installment payments may indicate that the car is pledged under a loan from the previous seller.
6. The car was purchased under a commission agreement. A record of this is made in the PTS.
7. When buying a vehicle at a car dealership, you must choose a company that has a license from an official representative of the manufacturer.

It is important to compare the documents for the car with the seller’s passport. All data must be identical. The presence of discrepancies indicates that the transport was sold by a trusted person. This transaction procedure may indicate the fact of credit obligations. It is imperative to check the initial purchase and sale agreement.

A person who decides to make such an obligation will have to pay less than PLN 880 per month. The annual real interest rate is 9.96%. The bank receives 5 percent. loan commission. Elsewhere there was a "Cheap loan" with a Euro bank account. Both of these products are available to people who have a personal bank account and will maintain a regular income.

A car loan is provided for the purchase of a specific car. In theory, this is a cheaper product because banks have additional collateral, so they bear lower risk. One thing is for sure - until the last loan payment, the bank is a co-owner of our car.

Checking a car for credit by VIN code

A free car check using the VIN code allows you not only to identify the fact of a pledge or loan of a vehicle, but also to find out its entire history, the number of sales, accidents and their nature, etc. The VIN code is required number, consisting of 17 digits and assigned to each machine. It contains the following information:

• Year of vehicle production;
• Country, city and assembly plant;
• Government agencies where the car was involved;
• Theft, pledge, loan;
• Number of sales.

The code is located under the hood of the car and on the door pillar on the driver's side. It is necessary to check the coincidence of the vehicle numbers in the documents. If there is a discrepancy or suspicion of a change, it is better to refuse to enter into a transaction.

What indicates that a car is in collateral?

Also, selling a car with additional collateral can be a problem, often requiring the bank's consent. If we decide to buy a car for 35 thousand. And we plan to repay the loan within 48 months, a cheaper solution turns out to be a cash loan. This shows that before you decide on a particular product in the bank, you should compare different options to choose the most profitable ones.

Your tax liability is levied on the taxpayer's taxable personal property. Tax authorities place liens when they fear that the obligation will not be met. In particular, when the taxpayer is in default of paying a public debt for a long time or when there is fear that the disposition of the property will interfere with or impede the discharge of the debt.

The presence of collateral or credit by VIN code is easily determined online. It's worth using the Vin service. auto.ru:

• Enter the VIN number in the highlighted field;
• Check the box - “Verification of collateral”;
• Click the “Check” button and wait for the result.

The only disadvantage of such a check is its limited information content. The information posted on the site is provided only by partner banks. There is often a possibility that the car is pledged to any other credit institution. Additionally, you can request a check through the traffic police website. After entering the number in the verification form, you need to select the “Check for restrictions” window.

Checking a car through a notary

Since mid-2014, a unified register of pledged property was created. It is conducted by the Federal Notary Chamber (FNC). It reflects information about borrowers of bank loans and vehicles encumbered with collateral. In the registry, information about a car can be found by the owner’s last name or VIN code. Using the code, the search will be easier and faster, since only by the unique number the car is considered to be maximally identified. To check you need to do the following:

• On the website, select the item “Pledge Information”. Mark the search for the vehicle and enter the VIN code.
• When you have not seen the car yet and the VIN number is unknown to you, you can use a keyword search. Usually this is any information about the vehicle or the name of the seller.

If the vehicle is pledged by a credit institution, the following data will appear on the search page:

1. Register number of the pledged property;
2. Date of registration of the car in the registry;
3. Name of property;
4. Information about the pawnee and pledgor of the car.

Access to the register is free at reestr-zalogov.ru. If you need to obtain a written document, you need to contact a notary and pay for the service at the current rate. It is worth considering that information about the borrower is not established if the vehicle number is available.

The current legislation transfers the maintenance of the register to the Chamber of Notaries. However, information about a car loan is recorded by the bank that issued the loan and is the mortgagee of the car. The process of data reflection is carried out exclusively at the initiative of the bank. His interest lies in the ban on the sale of vehicles until the debt is repaid.

Additionally, from September 2016 in Art. 339.1 of the Civil Code of the Russian Federation establishes a rule determining the date of emergence of the right to pledged property. This date is the moment of registration of the property in the register of pledges. This provision is important when the bank has not registered the car as collateral. If the car was sold during this period, then its withdrawal in favor of the bank will be illegal. Therefore, before buying a car, you need to check that it is not in the collateral database. To confirm the information, you should obtain an extract. Such a document is the basis for recognizing the buyer in good faith and will serve as protection against a bank that did not register the pledge in a timely manner.

The disadvantages of such a check include:

• The procedure for entering real estate into the register is optional. In the future, this may lead to legal disputes for the buyer to prove his innocence.
• There is no clear procedure for excluding a car from the list of collateral when the borrower repays obligations.

Checking a vehicle for collateral by registration number

The registration number, as a means of recording a car, allows you to check its history and clarify technical data. Considering that changing the owner of a vehicle does not require changing the number plate, the information can be as complete as possible. Now on the Internet you can find a lot of resources offering such verification on a paid and free basis. They usually contain information from official websites government agencies and services. By using registration number verification you will protect yourself from various troubles, including:

• Fraud schemes;
• Hidden damage;
• Established restrictions on transactions with cars;
• Fact of theft, participation of the car in the investigation of crimes;
• Distorted technical specifications.

Having checked the car according to the state. number, you will know exactly what kind of car you are buying - year of manufacture, body, make, factory color, etc. By studying the history of the vehicle, you can avoid problems with law enforcement agencies and banks if the car is stolen or pawned to a credit institution. To use this type of verification, simply enter the car number in the search bar indicating the subject code.

Transportation and use of the vehicle

Those interested in such loan security may wonder if and how they will be able to use a vehicle that will effectively only be co-owned. The parties have a lot of leeway in determining how the vehicle can be used by the borrower. The vast majority of banks prefer to settle this issue in a contract, so each party knows both their rights and their obligations.

When buying a used car for cash, we must personally check that it is not mortgaged. It may happen that the previous owner has not repaid the loan he promised to the car, and the bank will ask for the remaining amount from the new purchase. Ignorance of the law is harmful. A registered collateral is the most common form of security for a secured loan. In practice, this means that the vehicle registration note is annotated. However, there are times when there is no annotation and the car is still in danger.

Online car check

Today there are a lot of different resources and services for checking a car for a loan or collateral. Sources may be public or private. The latter provide information for a fee. Knowing the VIN code or registration number, you can easily find information about the car you are interested in and can find out its history, including whether it is in collateral or not.

Check through the bailiffs website. On the page with information on enforcement proceedings, you can find information about the institution of a similar procedure against the vehicle seller or the issuance of a resolution prohibiting registration actions. This fact indicates an additional risk when making a transaction that may be challenged by the creditor.

Search for information in the Credit History Bureau (BKI). Information in the database is entered by creditors and cannot be changed by third parties. Data is provided for a fee. The request can be made via the Internet. You need to know the VIN code or PTS number. If such information is not available, you can use the data of the car owner and conduct a search by individual. To provide information, you must indicate your address Email

In addition to self-checking, you can use the help of experts. In this case, additional expenses before purchasing a car can ensure that you do not incur significant losses in the future. Typically these are dealerships that specialize in checking vehicles for encumbrances through a variety of sources. Such an organization will give you the most accurate results. Specialists conduct checks not only through publicly available services, but through the databases of Russian banks.

So, often a used car can be pledged to the bank. Before entering into a contract, please use online services and check your future purchase. The original PTS, the presence of the primary purchase and sale agreement, and the matching VIN numbers confirm the legality of the transaction. By spending a little time checking and studying a small package of documents, you will receive the status of a bona fide buyer and protect yourself from financial problems in the future.

More than 2 million cars are included in the official register of collateral property of the Russian Federation. In order not to stumble upon a car with a mortgage when buying, check it on Autocode!

What will a car security check tell you?

Fill out the verification line on the Autocode website and receive brief description auto online. After payment for the service, a full machine report will be generated with the following data:

• Information in PTS
• Being in collateral
• History of registration actions
• Mileage
• Participation in an accident
• Traffic police restrictions, etc.

You can check whether the car is pledged online at any time using the vin or state number. A copy of the report will be sent to your email address.

Why you need to check your car for collateral - expert opinion

Vitaly Zaikov, auto expert

“One way or another, if the car is pledged, get ready for a lawsuit. The procedure will be long, nervous and tiring. You will have to try to get the court to recognize you as a bona fide buyer. And even if this happens, only the amount specified in the purchase and sale agreement will be returned. Despite the fact that very often the contract indicates a cost much less than the actual price of the car. In this case, the defendant will pay 50% of the income every month. Do you need this? It is better and more correct to check the car several times for collateral with the bank before purchasing through open and paid services.”

What happens if you don’t check the car for collateral before purchasing?

Victims' stories

Sergey

“I bought a car in 2013. A few months later it turned out that it was a pawn car. I had the original PTS in my hands. However, the court sided with the bank and the car was taken away. The police never found the fraudster. He hid in his homeland, Azerbaijan. Of course, no one returned the money.”

Konstantin

“A year ago I bought a car, and a month later I found out that it was listed as collateral. In general, he took the car apart and said that he didn’t know anything. I sold the parts, they say. Nobody needs the body. Of course, not the best method. But this is how I saved my car.”

How to get a mortgage on a car before buying

You can check a car for a deposit by vin or state number using Autocode. The service requests a minimum of information to prepare a full report.

What you need to do to check a pledged car:

• Enter the registration number in the search bar;
• Get a brief description of the car and pay for a full report;
• Receive the report on the screen online and by email.

It’s easy to find out whether a car is pledged or not in 3 steps. You do not need to go anywhere or additionally search for VIN, as on other car checking sites. You can check a car registered in any region of Russia.

Why is it better to unlock a car through Autocode?

The main advantage of Autocode is that without leaving the computer, within 5 minutes, indicating only the state code. number, you will receive all the information about the car. The report traces full story cars from the factory until the moment of sale. Even specialized salons turn to Autocode for help to find out the real picture of the vehicle.

There are at least five reasons to contact us:

• All reports are verified through official sources - the traffic police, the register of pledges in the Federal Notary Chamber, etc.;
• A car can only be identified by registration number;
• The check takes 5 minutes;
• Current mobile app Autocode allows you to check the car directly on the transaction.

Buying an untested car can lead to serious consequences - legal action, loss of money, time and car. Thanks to the well-coordinated work of the service, you will receive a report on time and find out what the desired car “breathes” even before the transaction. And remember: whoever owns the information owns the world. In your case, a car!