Checking if a Car is on Credit

One out of every two cars in Azerbaijan is purchased with a loan. The period of use is usually 3-5 years, and during this time, the owner might forget to inform the buyer about the outstanding loan on the car.

While the sale and purchase agreement of a car under loan is not illegal, acquiring such a vehicle involves some details worth noting. Checking if a car is on credit by its state number or VIN code is easy and should not be overlooked.

Why is Checking for Car Credit Important?

If a car is purchased through a loan, it will remain pledged at the bank until the debt is fully paid off. After signing the purchase agreement, the buyer becomes not only the owner of the car but also the debtor of the loan associated with it. From that moment on, paying off the loan becomes their responsibility.

If the bank has entered the information into the relevant FNP, the buyer cannot claim ignorance about the outstanding loan on the car. According to the law, if the buyer had the opportunity to check if the car was on credit but didn't use it, it does not exempt them from the obligations to the bank.

What are the Signs of a Credit Car?

How can you find out if a car is on loan? You might suspect that the seller is selling a credit car based on several signs:

  • The price of the car is significantly lower than the market price. This sign often indicates problematic cars (not only warranty issues but also technical problems) or, in rare cases, urgency due to the seller's personal circumstances.
  • The car's technical passport indicates that it was purchased under a commission contract (such a contract is concluded through an intermediary in the purchase of a car).
  • The car has been owned by the current owner for less than 3 years (the most common loan term for a car is 3 years, rarely the debt is set for 5 years).
  • The original technical passport is missing (the car's technical passport remains with the bank as collateral until the debt is fully paid off).
  • The seller refuses to show the car's sale-purchase agreement (if the car is under loan, this agreement will be immediately visible).

The above are signs of a car under loan. Based on them, it is impossible to come to a definite conclusion about the outstanding debt.

To accurately determine whether a car is on loan, there are three options:

  • Ask the seller to show the CASCO policy (information about the loan will be indicated there). This method has many conflicts - the current owner may not have a CASCO policy, and even if they do, they may refuse to show it.
  • Send queries to the relevant state authorities yourself and carefully study the FNP information. Drawbacks include the often lengthy process and the frequent unavailability or technical issues with the authorized agency's websites.
  • Check the car on CarCheck.az - the fastest, most convenient, and informative way.

The service uses data from more than 50 information sources (both state and commercial databases - FNP, YPX, STO, insurance companies, and many others).

Credit Check on CarCheck.az

The online service CarCheck.az allows you to check if a car is under loan in just a few minutes.

The service compiles a detailed report on any used car based on the VIN code, state number, or frame (for Japanese cars).

From the CarCheck.az report, you can learn the following about the car:

  • Operation history (if the car has been in accidents, worked in taxi fleets, passed diagnostic inspections - all of this will be reflected in the report).
  • Registration history (how many owners the car has had, how frequently it has changed hands, in which cities and regions it has been registered).
  • Official legal information from government databases (restrictions and prohibitions on property and registration operations, fines and technical specifications, up to car thefts).
  • Sales history (all sale ads for the car, photos, prices, distance information).

Checking if a car is under loan is essential. However, this is not the only factor that should pique the buyer's interest. Signing a contract for purchasing a car involves a significant amount of money and must be safe.

The detailed report from CarCheck.az will protect you from unpleasant surprises. Learn everything about the car.