Complete HPI Check Guide 2025 - Everything You Need to Know

Spending £10,000 on a used car without an HPI check is like buying a house without checking if someone else owns it. You might think you're getting a great deal, but you could end up losing both the car and your money.

Every year, thousands of UK buyers discover too late that their "bargain" car has outstanding finance - and the finance company has the legal right to repossess it, even though you paid cash. An HPI check for £20-30 could have prevented this nightmare.

This comprehensive guide explains everything you need to know about HPI checks: what they are, what they reveal, how to run one, and why they're absolutely essential for every used car purchase in the UK.

What Is an HPI Check?

HPI (Hire Purchase Investigations) is the UK's original and most established vehicle history checking service. Founded in 1938, HPI maintains the most comprehensive database of vehicle history information in the UK.

An HPI check reveals:

• Outstanding finance - Whether money is still owed on the vehicle
• Stolen status - If the car has been reported stolen
• Write-off history - Previous insurance write-offs (Cat A, B, S, N)
• Mileage anomalies - Discrepancies suggesting clocking
• Number plate changes - Previous registrations
• Scrapped status - If the car has been officially scrapped
• Import/export records - Whether the car has been imported
• Previous keepers - Number of previous owners
• Colour changes - Official colour modifications
• Vehicle specification - Original manufacturer spec

Why it's called "HPI": Originally, HPI specifically checked Hire Purchase (finance) agreements. The name stuck, and while HPI now checks much more than finance, the term "HPI check" has become synonymous with vehicle history checks in the UK - similar to how "Hoover" means vacuum cleaner.

Why You Absolutely Need an HPI Check

The statistics are frightening:

Over 2 million UK vehicles have outstanding finance - That's roughly 1 in 14 cars on the road. If you buy one with finance still owed, the finance company can legally repossess it even though you paid cash.

100,000+ cars are clocked each year - Mileage fraud costs UK buyers an estimated £800 million annually.

400,000+ vehicles have been written off - Many poorly repaired write-offs are sold without disclosure, putting you at risk.

35,000+ stolen cars - Buying stolen property is a criminal offence, and police will seize the vehicle.

Real-Life Consequences Without an HPI Check

Sarah's story (Manchester, 2024): "I paid £8,500 cash for a BMW 3 Series from a private seller. Three months later, bailiffs turned up and took the car. It had £12,000 outstanding finance. I lost everything - the car and my money. A £20 HPI check would have revealed this."

James's story (Birmingham, 2023): "Bought a 'low mileage' Focus for £6,000. The seller showed 42,000 miles. An MOT history check later revealed it had done 118,000 miles. I overpaid by at least £2,000. An HPI check would have flagged the mileage discrepancy."

These stories are not rare. Consumer protection groups report thousands of similar cases annually.

What Does an HPI Check Reveal? (Detailed Breakdown)

Let's examine exactly what information an HPI check provides:

1. Outstanding Finance Check (Critical)

What it shows:

• Whether finance is still owed on the vehicle
• Which finance company holds the agreement
• When the finance agreement started
• Status: Active, Settled, or Partial

Why it matters: Under UK law, the finance company retains legal ownership until the agreement is fully paid. If you buy a car with outstanding finance:

• The finance company can repossess it legally
• You lose both the car AND your money
• You have no legal comeback (especially in private sales)
• Recovering your money requires suing the seller (who may have disappeared)

The risk is real:

• Over 2 million UK cars have outstanding finance
• Average outstanding amount: £8,000-£12,000
• Finance companies repossess thousands of vehicles annually from innocent buyers

HPI's guarantee: If HPI fails to identify outstanding finance and you lose the car as a result, they provide a guarantee (up to £30,000) - but only if you bought the HPI check yourself.

2. Stolen Vehicle Check

What it shows:

• Whether the car is recorded as stolen on police databases
• Date reported stolen
• Police force handling the case

Why it matters:

• Buying stolen property is a criminal offence
• Police will seize the vehicle immediately
• You lose your money
• You could face criminal investigation
• Insurance companies won't cover stolen vehicles

How cars are stolen and sold:

• Opportunistic theft and quick sale
• Professional theft rings with false documentation
• "Ringing" (stolen car given identity of written-off car)
• Cloning (genuine car's identity copied to stolen vehicle)

Protection: HPI checks the Police National Computer (PNC) database and insurance company records for stolen vehicles.

3. Write-Off History (Insurance Loss Register)

What it shows:

• Whether the car has been written off by an insurance company
• Write-off category: A, B, S (structural), or N (non-structural)
• Date of write-off
• Which insurance company wrote it off

Why it matters:

• Cat A & B vehicles should never be back on the road (illegal)
• Cat S vehicles have had structural damage (safety concerns)
• Cat N vehicles have had non-structural damage (electrical, cosmetic)
• Write-offs reduce value by 20-40%
• Insurance can be more expensive or difficult to obtain
• Poor repairs can make the car dangerous

Write-off categories explained:

Category A (Scrap only):

• Total loss - extensive damage
• Must be crushed completely
• No parts can be salvaged for road use
• If you find a Cat A car for sale, walk away immediately (illegal)

Category B (Break for parts):

• Extensive damage
• Body shell must be crushed
• Parts can be salvaged for other vehicles
• If the car is back on the road, walk away (illegal)

Category S (Structural damage):

• Repairable structural damage (chassis, frame, crumple zones)
• Can be repaired and returned to road legally
• Must pass VIC (Vehicle Identity Check) inspection
• Value reduced by 25-40%
• Consider only if professionally repaired with full documentation

Category N (Non-structural damage):

• Non-structural damage (electrical, cosmetic, interior)
• Can be repaired and returned to road
• Often good value if damage was minor
• Value reduced by 10-20%
• Check repair quality carefully

→ Read our detailed guide: Understanding Write-Off Categories

4. Mileage Anomalies

What it shows:

• Recorded mileage from various sources (MOT, services, insurance)
• Mileage discrepancies suggesting clocking
• Historical mileage progression
• Mileage at key events (sales, services, insurance claims)

Why it matters:

• Clocked cars are worth significantly less
• 1 in 20 UK cars has been clocked
• Average loss to buyers: £2,000-£3,000
• High mileage engines sold as low mileage = future expensive repairs
• Clocking is fraud and illegal

How HPI detects clocking:

• Cross-references MOT database (mileage recorded annually)
• Checks service history records
• Reviews insurance claims data
• Identifies decreases or suspicious jumps in mileage

Red flags HPI identifies:

• Mileage decrease between checks
• Unusually low mileage for age
• Large mileage increases between readings
• Mileage inconsistent with service history

→ Learn more: How to Spot a Clocked Car

5. Number Plate Changes

What it shows:

• All previous registration plates
• Dates of plate changes
• Reason for change (if recorded)

Why it matters:

• Multiple plate changes can hide the car's history
• May indicate attempt to conceal damage or criminal history
• Personalised plates removed before sale may hide MOT failures
• Helps you search for the car's full history under previous plates

Legitimate reasons for plate changes:

• Owner applied personalised plate
• Car imported (given UK plate)
• Plate damaged/lost and replaced

Suspicious reasons:

• Hiding accident history
• Concealing poor MOT history
• Making stolen car harder to trace
• Avoiding previous bad reputation (ex-taxi, rental car, etc.)

6. Previous Keepers

What it shows:

• Number of previous registered keepers
• Type of keepers (private, company, lease company, rental)

Why it matters:

• Multiple owners in short time = potential problem car
• Ex-rental/taxi = high wear and hard use
• Lease company history usually means well-maintained
• Single owner car often more valuable

Red flags:

• 5+ owners on a 3-year-old car (why didn't they keep it?)
• Ex-taxi or private hire (very high mileage and wear)
• Ex-rental (enthusiastically driven by multiple drivers)

Good signs:

• One or two private owners
• Company car or lease (usually maintained well)
• Long-term ownership (suggests satisfaction)

7. Scrapped Status

What it shows:

• Whether the car has been officially registered as scrapped
• Date of scrapping
• Whether DVLA records show it as destroyed

Why it matters:

• Scrapped cars should not be back on the road
• May have been illegally "revived"
• Could be using another car's identity
• May have serious safety issues

8. Import/Export Records

What it shows:

• Whether the car was imported from abroad
• Country of origin
• Date of import
• Whether it was previously exported and re-imported

Why it matters:

• Imported cars may have hidden history from abroad
• Different spec from UK models
• May not meet UK safety/emissions standards
• Warranty may not be valid
• Parts can be harder to source
• Insurance may be more expensive

Legitimate imports:

• European specification (very similar to UK)
• Personal import by owner
• Official manufacturer import

Concerning imports:

• Imported from area with lax safety standards
• Flood-damaged cars from Europe/America
• Left-hand drive converted to right-hand drive (expensive, often poor quality)
• Imported to hide accident history from origin country

9. Colour Changes

What it shows:

• Original factory colour
• Any official colour changes registered with DVLA
• Date of colour change

Why it matters:

• Colour change can hide accident damage/poor repairs
• Professional respray is expensive (£2,000-£5,000) - why was it done?
• May indicate previously damaged panels replaced
• Non-matching panels under different light could indicate repairs

10. Vehicle Specification Check

What it shows:

• Original factory specification
• Engine size and type
• Transmission type
• Standard equipment and options

Why it matters:

• Confirms car is as described
• Identifies if engine has been changed (potential issues)
• Verifies trim level matches seller's claims
• Ensures you're getting what you pay for

How to Run an HPI Check - Step by Step

Running an HPI check is simple and takes just a few minutes:

Option 1: Official HPI Check (Most Comprehensive)

Step 1: Visit https://www.hpicheck.com

Step 2: Choose your check level:

• Basic Check (£9.99): Finance, stolen, write-off
• HPI Check (£19.99): Everything in basic plus mileage, plate changes, spec
• HPI Check Plus (£29.99): Everything plus valuation and service history check

Step 3: Enter vehicle registration number

Step 4: Provide payment details

Step 5: Receive instant report via email and online

Time: Results within 1-2 minutes

Guarantee: £30,000 protection if HPI misses outstanding finance

Option 2: CarSorted Complete Vehicle Check (Best Value)

Why we recommend CarSorted:

• Comprehensive HPI-equivalent check
• Includes digital service history verification (2012+ cars)
• Better value than standalone HPI
• User-friendly reports
• One-stop solution

Step 1: Visit CarSorted.com

Step 2: Enter registration number

Step 3: Choose Complete Vehicle Check package (£24.99)

Step 4: Receive comprehensive report including:

• Outstanding finance check
• Stolen vehicle check
• Write-off history
• Mileage verification
• Plate changes
• Digital service history (2012+ cars)
• MOT history
• Valuation

→ Get a complete vehicle check from CarSorted

Option 3: Alternative Providers

AA Car Check (£19.99):

• Trusted AA brand
• Finance, stolen, write-off, mileage
• Good value alternative
• Link: https://www.theaa.com

RAC Vehicle Check (£24.99):

• Established provider
• Comprehensive history
• Similar to HPI coverage
• Link: https://www.rac.co.uk

MyCarCheck (£9.99-£24.99):

• Budget-friendly option
• Basic to comprehensive tiers
• Good for older/cheaper cars

All reputable providers access the same core databases:

• HPI database (finance agreements)
• MIAFTR (Motor Insurance Anti-Fraud and Theft Register)
• Police National Computer
• DVLA records
• Insurance company data

When to Run the HPI Check

Timing is critical:

Before viewing the car:

• Run free MOT history check first (gov.uk)
• If MOT history looks good, then pay for HPI check
• Review HPI results before traveling to view
• Don't waste time viewing cars with finance or stolen status

Don't wait until:

• After you've fallen in love with the car
• At the seller's location (pressure to buy)
• After you've negotiated a price
• When the seller is rushing you

Cost-saving tip: Run free government checks first (MOT history, vehicle enquiry, tax check). Only pay for HPI check if the free checks pass. This avoids wasting £20-30 on cars that fail free checks.

How to Interpret HPI Check Results

Understanding your HPI report is crucial. Here's what to look for:

Clean Report (Green Across the Board)

What it means:

• ✅ No outstanding finance
• ✅ Not stolen
• ✅ No write-off history
• ✅ No mileage anomalies
• ✅ No concerning plate changes
• ✅ Not scrapped

Action: Proceed with purchase confidently (after physical inspection and test drive)

Outstanding Finance Detected (Red Flag)

If buying privately:

• WALK AWAY - Do not buy
• The finance company can repossess from you
• You will lose your money
• Not worth the risk

If buying from a dealer:

• Dealer must settle finance before sale
• Get written confirmation finance will be cleared
• Verify settlement before completing purchase
• Request proof finance has been settled
• If dealer won't settle, walk away

Never assume:

• "I'll pay off the finance" (you have no legal right to)
• "The seller will pay it off later" (they won't)
• "It's only a small amount" (doesn't matter - car can still be repossessed)

Stolen Status (Immediate Walk Away)

Action:

• Do not buy under any circumstances
• Report to police immediately (call 101 or Action Fraud)
• Buying stolen goods is a criminal offence
• Leave the viewing immediately
• Do not confront the seller (safety risk)

Write-Off History Detected

Category A or B:

• Absolute deal-breaker
• Should not be on the road (illegal)
• Walk away immediately

Category S (Structural):

• Consider only if:
  • Price reflects 30-40% discount
  • Full professional repair documentation available
  • Independent inspection confirms quality
  • You can accept insurance difficulties
  • You understand reduced resale value
• Walk away if:
  • Seller didn't disclose
  • No repair receipts
  • Damage was severe
  • Price not significantly reduced

Category N (Non-Structural):

• Often acceptable if:
  • Price reflects 15-25% discount
  • Damage was minor (cosmetic, electrical)
  • Repair quality is good
  • Car drives well
• Consider carefully if:
  • Damage involved safety systems (airbags, ABS, etc.)
  • Electrical issues persist
  • Insurance quotes are high

→ Detailed guide: Understanding Write-Off Categories

Mileage Discrepancies

Minor discrepancy (1,000-2,000 miles):

• Could be data entry error
• Check MOT history to verify
• Investigate further but not necessarily deal-breaker

Major discrepancy (10,000+ miles or mileage decrease):

• Strong indication of clocking
• Walk away unless satisfactory explanation
• Seller should reduce price significantly
• Consider that ALL mileage may be suspect

Action if clocking suspected:

• Request explanation from seller
• Check physical wear (pedals, steering wheel, seats)
• Review MOT history independently
• If confirmed clocking, walk away

→ Learn how to spot clocked cars: Complete Guide

Multiple Plate Changes

1-2 changes:

• Usually normal (personalised plates)
• Check if changes align with ownership changes

3+ changes:

• Investigate reason
• Could be hiding history
• Search car's history under all previous plates
• Verify no concerning history under old plates

Multiple Previous Keepers (Short Time)

5+ owners in 2-3 years:

• Major red flag
• Suggests problem car
• Investigate why owners didn't keep it
• Negotiate significant discount or walk away

Free vs Paid Vehicle Checks - Comparison

Let's compare what you get for free versus what you get with a paid HPI check:

Free Government Checks

1. MOT History (gov.uk):

• ✅ Mileage history (annual readings)
• ✅ Test failures and advisories
• ✅ Test dates
• ✅ Free

2. Vehicle Enquiry (gov.uk):

• ✅ Basic details (make, model, colour)
• ✅ Tax status
• ✅ MOT status
• ✅ Free

3. Vehicle Tax Check (gov.uk):

• ✅ Tax due date
• ✅ SORN history
• ✅ Free

What free checks DON'T show:

• ❌ Outstanding finance (critical)
• ❌ Stolen status (critical)
• ❌ Write-off history (important)
• ❌ Comprehensive mileage verification
• ❌ Plate change history
• ❌ Scrapped status

Paid HPI/Vehicle History Check

What you get for £20-30:

• ✅ Outstanding finance check
• ✅ Stolen vehicle check
• ✅ Write-off register
• ✅ Mileage anomaly detection
• ✅ Plate change history
• ✅ Scrapped vehicle check
• ✅ Previous keeper information
• ✅ Import/export records
• ✅ Financial guarantee (if finance missed)

Our Recommendation

Use both:

1. Start with free checks - MOT history and vehicle enquiry (£0)
2. If free checks pass, pay for HPI check (£20-30)
3. Only view car if both free and paid checks are satisfactory

Don't skip the paid check: The £20-30 cost is 0.2-0.6% of a typical used car purchase. It could save you thousands or even the entire car value.

Think of it as insurance:

• £25 HPI check on £5,000 car = 0.5%
• Could save you: £5,000 (if stolen) or £2,000-8,000 (if outstanding finance)
• ROI: Potentially 20,000%+

Understanding Outstanding Finance in Detail

Outstanding finance is the biggest risk when buying a used car. Let's understand it thoroughly:

How Car Finance Works

When someone buys a car on finance:

1. Finance company pays dealer
2. Buyer makes monthly payments
3. Finance company retains legal ownership
4. Buyer becomes owner only after final payment
5. Finance agreement registered against the car's VIN

Common finance types:

• PCP (Personal Contract Purchase): Most common, large final balloon payment
• HP (Hire Purchase): Fixed monthly payments, own car after final payment
• Lease: Never own the car, must return it
• Personal Loan: Unsecured, buyer owns car immediately (not registered against vehicle)

Only PCP, HP, and leases are registered against the vehicle - personal loans don't show on HPI checks.

What Happens If You Buy a Car With Outstanding Finance

Legal position:

• Finance company has "priority of title"
• They own the car until finance is paid
• They can legally repossess it
• Your purchase doesn't override their ownership
• Paying cash doesn't matter - they still own it

Real-world scenario:

1. You buy car for £7,000 cash
2. Finance company contacts you (2 weeks to 6 months later)
3. They prove they own the car (£9,000 still owed)
4. They repossess the car
5. You lose both the car AND your £7,000
6. Your only recourse: Sue the seller (who may have disappeared)

How common is this?

• Over 2 million UK cars have outstanding finance
• Thousands of innocent buyers lose their cars annually
• Average outstanding finance: £8,000-£12,000
• Recovery rate for buyers suing sellers: Less than 20%

How Sellers "Forget" to Mention Finance

The lies:

• "It's all paid off" (check if it actually is)
• "I'm paying it off tomorrow" (never happens)
• "There's only a tiny bit left" (still grounds for repossession)
• "The finance company won't come after you" (they will)
• "I've never had finance on it" (HPI will reveal the truth)

Why sellers do it:

• Genuinely forgot (rare)
• Hoping you won't check
• Desperate to sell before finance company acts
• Planning to disappear with your cash
• Finance is more than car's value (negative equity)

Your protection:

• Always run HPI check
• Never trust verbal assurances
• Get written confirmation
• Walk away if finance exists (private sale)

What to Do If Finance Is Detected

Private sale:

• Do not proceed
• Walk away
• Tell seller to settle finance first
• Don't accept promises to "pay it tomorrow"
• Not worth the risk

Dealer sale:

• Dealer must settle finance before sale
• This is standard practice for dealers
• Get written confirmation in sales contract
• Request proof of settlement before collection
• Most dealers handle this professionally
• If dealer refuses, buy elsewhere

After purchase (if you didn't check):

• Finance company contacts you
• Act immediately - don't ignore
• Gather evidence (advert, messages, receipt)
• Seek legal advice quickly
• Report seller to Action Fraud
• Sue seller in small claims court
• Learn expensive lesson: Always check first

HPI Check Guarantee - What It Covers

Most HPI providers offer a financial guarantee. Here's what it means:

HPI's Guarantee

If HPI misses outstanding finance:

• HPI will compensate you up to £30,000
• Covers your financial loss if car is repossessed
• Only valid if YOU purchased the HPI check
• Must report issue to HPI within specific timeframe
• Must provide evidence of purchase and loss

Conditions:

• You must have bought the HPI check yourself
• Finance must have existed at time of check
• Finance must not have been disclosed
• You must have purchased the car legally
• Loss must be proven

What's NOT covered:

• Finance added after you bought the HPI check
• Finance you were told about but ignored
• Cars bought without proper documentation
• Commercial vehicles (in some cases)
• Losses beyond the guarantee limit

Making a Claim

If finance is missed and car is repossessed:

1. Contact HPI immediately
2. Provide:
   • Original HPI check report
   • Purchase receipt
   • Finance company repossession notice
   • Evidence of financial loss
3. HPI investigates
4. If valid, compensation paid

Success rate: HPI claims are successful if all conditions are met. However, prevention is better than claiming - the HPI check usually prevents these situations entirely.

Common HPI Check Questions

Is an HPI check worth it for a cheap car?

Yes, absolutely. Even for a £2,000 car:

• Outstanding finance could be £5,000+ (you lose the car)
• Stolen status means police seize it (you lose £2,000)
• Clocked mileage might mean you overpaid by £500-£1,000
• £20 check is 1% of the purchase price - excellent insurance

How long is an HPI check valid?

HPI checks are valid the day they're run. Vehicle status can change, so:

• Run check as close to purchase as possible
• Ideally within 24-48 hours of buying
• If more than 7 days pass, consider running again
• Finance can be added or settled daily

Can I get an HPI check for free?

No, comprehensive HPI checks are paid services. However:

• MOT history is free (shows some mileage data)
• Basic vehicle enquiry is free (gov.uk)
• But critical data (finance, stolen status) requires paid check
• £20-30 is essential spending, not optional

What if the seller refuses to provide registration for HPI check?

Walk away immediately. This is a massive red flag:

• Honest sellers welcome checks
• Registration is visible on the car anyway
• Refusal suggests something to hide
• Could indicate stolen, financed, or clocked car

Can HPI checks be faked?

Genuine HPI reports are hard to fake, but scammers try:

• Always run the check yourself
• Don't trust reports provided by seller
• Verify directly on provider's website
• Check report date matches viewing date
• Contact provider to verify report authenticity

How to verify:

• Check report has unique certificate number
• Visit HPI/provider website and verify report
• Real-time checks prevent fakery

Does an HPI check show if repairs were done properly?

No. HPI shows IF a car was written off, but not:

• Quality of repairs
• Whether repairs meet safety standards
• If genuine parts were used

For write-offs, you also need:

• Independent mechanical inspection (£100-£200)
• Review of repair receipts
• Photos of damage before repair (if available)

→ Related: Understanding Write-Off Categories and Repair Quality

HPI Check Before Viewing - Checklist

Use this checklist for every used car you consider:

Before Contacting Seller

• Get registration number from advert
• Run free MOT history check (gov.uk)
• Check MOT history for mileage consistency
• Run free vehicle enquiry (gov.uk)
• Verify details match advert (colour, age, etc.)

If Free Checks Pass

• Purchase HPI check (£20-30)
• Review all sections of report carefully
• Check: No outstanding finance
• Check: Not stolen
• Check: No write-off (or acceptable category)
• Check: No mileage anomalies
• Check: Previous keepers reasonable
• Check: Plate changes explainable

If HPI Check Passes

• Arrange viewing
• Prepare questions based on HPI findings
• Print HPI report to take with you
• Plan vehicle inspection and test drive

Red Flags to Walk Away

• Outstanding finance (private sale)
• Stolen status
• Cat A or Cat B write-off
• Significant mileage discrepancies
• Seller refuses HPI check or registration
• Write-off not disclosed by seller

Conclusion

An HPI check is not optional - it's essential. For £20-30, you get protection against:

• Losing your car to outstanding finance
• Buying stolen property
• Purchasing dangerous write-offs
• Overpaying for clocked cars
• Hidden history that affects value

The statistics are clear:

• 2 million+ cars with outstanding finance
• 100,000+ clocked cars annually
• 35,000+ stolen vehicles
• 400,000+ write-offs

Your protection is simple:

1. Run free MOT history check
2. Purchase HPI check (£20-30)
3. Only view cars that pass both checks
4. Walk away from any red flags

Don't let £20-30 stand between you and a safe, legal, properly valued car purchase. The few pounds spent on an HPI check could save you thousands - or even your entire purchase price.

Think of it this way: spending £25 on an HPI check for a £5,000 car is 0.5% of the value. That £25 could save you £5,000 (stolen car), £8,000 (outstanding finance), or £2,000 (clocked mileage). The ROI is potentially 10,000%+.

Ready to check a car's history? Get a complete HPI-equivalent check with CarSorted now →

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Related Guides

• Complete UK Car Check Guide 2025
• How to Check MOT History and What It Reveals
• How to Spot a Clocked Car - Warning Signs
• Understanding Write-Off Categories - Full Guide
• How to Check a Car's Service History Online
• Complete Guide to Buying a Used Car in the UK