What is the Financial and Legal Status section in a vehicle history report?

The Financial and Legal Status section in a carVertical report provides information on any financial or legal issues associated with the vehicle. This can include financial restrictions like leases and legal information, such as passed/failed technical inspection or the car's designation as “scrapped.”

Note: Depending on your location, you may see only the Financial Status or only Legal Status parts of this section.

What you can learn from the Financial and Legal Status section

This section is divided into two parts – Outstanding Finance and Legal. If any records are associated with these areas, a yellow warning sign will appear at the top of the Financial and Legal Status section and the top of the report.

The Outstanding Finance part of this section may include information about:

• Lease, indicating that the car is currently leased, which might impact ownership transfer.
• Operating lease shows if the car is under an operating lease agreement, often used for business or fleet vehicles. This type of contract allows for a car’s use but doesn’t convey ownership rights of the vehicle.
• Unit-stocking refers to financing used by dealerships to stock vehicles, which might limit an individual's ability to purchase or register the car independently.

In the Legal part of the section, you can find details on whether the vehicle:

• Has passed technical inspections. Vehicles that have not passed may need repairs or modifications before they can be legally driven.
• Is marked as “scrapped,” meaning that it’s designated for dismantling and isn’t legally allowed on the road. This status can affect resale and eligibility for registration.
• Was imported or exported, which could mean specific compliance requirements (e.g., extra inspections or certifications for roadworthiness).

Each record contains an event type, its status (Record found, No record found, Passed [technical inspection]), the date and country where the event was recorded, and a short explanation.

Fines in Mexico

In Mexico, the Outstanding Finance part of the report refers to financial obligations often tied to unpaid traffic violations or vehicle infractions. Before purchasing a used car in this country, it’s essential to check for fines, as they can be transferred with the vehicle and may need to be settled before registering the car in your name.

Therefore, in the Financial Status section, you can check whether there are unpaid fines related to the vehicle you’re interested in.

Security Interest in Australia

A Security Interest in Australia refers to a legal right that a lender or creditor has over the vehicle as collateral for a loan or other financial obligation. It is typically created through a financing arrangement where personal property, in this case, a vehicle, is used as security to ensure the repayment of the loan.

The security interest record is typically displayed in the Registration Status section, indicating that the vehicle may be repossessed by the lender/creditor if the borrower defaults on payments. Check this section to ensure all financial obligations are settled.

Why this section may be incomplete or missing from the report?

The information included in the report depends on the availability of data. If the Financial and Legal Status section is missing, it means that it’s not yet supported in your location. Additionally, certain records may be absent if they are not relevant to your country (e.g., unpaid fines are only shown in Mexico).

Why are financial restrictions important when buying a used car?

Financial restrictions indicate any debts or liens tied to a used car, impacting ownership transfer and financial liability. Unresolved restrictions can prevent registration, lead to repossession risks, or add costs.

Knowing these beforehand can help avoid unexpected expenses and legal complications, ensuring a safer purchase.

Still have questions? If you need more help understanding the Financial and Legal Status section of your report, feel free to reach out to our support team.