What is a HPI check, and do I need one?

Credit checks, affordability checks, vehicle checks – the car buying process can sometimes feel like one giant checklist (and who doesn’t love a checklist?)
 
Ready to add another one to your list? Meet HPI checks.
 
Buying a used car offers a whole host of perks that can help soften the blow of not being the first person to own your new pride and joy (and soak in that new car smell!) Not only can choosing used save you money, but it can also be a great way of avoiding the little niggles and long waiting list that can come with a model that’s just rolled off the factory floor.
 
Of course, choosing to get a pre-loved vehicle also comes with risks. Previous owners can cause problems: think scratched paintwork, torn upholstery, or a clutch that’s close to burning out. That uncertainty is the price you pay for potentially saving hundreds, if not thousands, of pounds on the original showroom price.
 
The good news is that you can take simple steps before you sign to ensure your great deal doesn’t turn into a costly mistake. There are visual and in-person checks you can do yourself – look over the bodywork and take it for a test drive – and you could always ask a trusted mechanic to take a look under the hood before you buy.
 
But what about the hidden issues?
 
Not even the world’s best mechanic (B.A. Baracus, we’re looking at you) can tell you whether the car’s been stolen, written off, or has outstanding finance left to pay.
 
That’s where an HPI check comes in.

What is an HPI check?

HPI stands for Hire Purchase Investigation, which was one of the first firms to offer vehicle checks to used car buyers.
 
Nowadays, there are lots of different companies who can carry them out for you, but we still use the term ‘HPI checks’ as a catch-all term.
 
Each service offers something slightly different, but they all aim to tell you information about a car that wouldn’t be obvious to the naked eye (saucy).
 
An HPI check will use approximately 80 different information points to paint a picture of the car’s previous life, including whether it’s ever been stolen, scrapped, or written off. You’ll also be able to find out whether there’s outstanding finance owed.

What can a HPI check uncover?

Think of the HPI check as a private detective, digging into the details of your new wheels. The exact information you receive will depend on the provider you choose, but you’ll usually be able to uncover some hidden gems like:

• Whether the car is stolen
• If it’s been declared a write-off
• If there’s outstanding finance
• Its make and model
• The number of doors it should have
• Its current and previous colours
• How many owners it’s had in the past

With all this information at your fingertips, you can find out whether everything the seller has told you – or has been listed in the advert – is true or embellishes the truth slightly.
 
If your checks tell you the registration number is associated with a five-door Barbie pink Range Rover and you’re standing in front of a three-door black Mini Cooper, you can safely assume it’s got false plates.
 
You can also make sure that the number plate and vehicle identification number (VIN) match the DVLA database.

More car finance guides

• HP vs PCP: Which is Right For Me?
• What is Hire Purchase (HP) finance?
• Hire Purchase vs Leasing: Which is Better?
• How Does Personal Contract Purchase (PCP) Finance Work?

What doesn’t a HPI check show you?

An HPI check can reveal a treasure trove of information you might not be able to find elsewhere, but it won’t tell you everything (including whether your work crush feels the same way).

Any unreported damage

If the car has been in a minor fender bender (we all know that pole came out of nowhere), there’s every chance that it might have been repaired without being reported to the insurance provider. Even more serious damage might not be disclosed if the car wasn’t written off and the owner chose not to make a claim. In this case, your own visual checks and advice from a trained mechanic could give you the reassurance you need.

The previous owners’ details

You’ll likely find out how many owners have driven your new pride and joy before you, but you won’t learn any other details about them such as their address or contact details. Don’t worry, it’s not likely that you’ll need this information anyway unless you’re concerned the car has been stolen or the seller has given you false details (unless you wanted to add them all to your Christmas card list!)

The vehicle’s service history

An HPI check won’t tell you whether the car has been serviced on schedule and when certain routine maintenance tasks were carried out like changing the oil or topping up the brake fluid. Instead, ask the car’s seller if they can include its service history paperwork. Many cars will have a physical document noting when and where each service took place.

Where can I get a HPI check?

A quick Google will reveal hundreds of results with businesses offering online HPI checks. One or two clicks and you’re done – it really can be that easy.
 
Hpicheck.co.uk is one of the most well-known websites to offer these services. As well as covering all the basics, it’ll also tell you whether there are any mileage discrepancies and how much the car is roughly worth so you can check whether you’re being asked to pay over the odds.
 
The RAC also offers comprehensive checks. It will also let you know how much it might cost to own and run the car, which can be helpful when you’re trying to work out your budget.

At Carmoola, we offer a free HPI check through our handy app when you apply for car finance. That means you can do unlimited checks on a car that catches your eye, from your phone, in a matter of minutes. 

How much does a HPI check cost?

As there are hundreds of different providers offering HPI checks, the amount you’ll pay will depend on the service you use and the details they check.
 
Generally speaking, the more thorough the checks, the more you’ll need to pay.
 
You might find providers charging as little as £1.99 although basic checks will usually start from around £10. More detailed reports could cost you anything from £30 to £50.

You might also find that a free HPI is offered by car finance brokers (like us) and dealerships as a complimentary added extra.

Why is a HPI check important?

Buying a car is a serious financial commitment, probably second only to buying a home (or a private jet). That means you’re making a decision that could cost you thousands of pounds, no matter whether you’re buying outright in cash or with a type of car finance.
 
With a used car, the risks are higher as you can’t be sure what the car has been through before ending up on your driveway. There are some checks you can do yourself – a massive dent or rusty wheels will be easy to spot – but others are hidden issues that won’t even be unearthed by an experienced mechanic.
 
There’s no way of knowing for sure that your car hasn’t been written off, stolen, or bought on finance that hasn’t yet been paid without HPI checks, especially if you’re buying from a private seller rather than a franchised dealership.
 
If you don’t bother with an HPI check and your car has been stolen or has outstanding finance, you could end up with it being taken away from you by the police or finance provider, even though you bought it in good faith.

Is it worth it?

An online HPI check takes a few minutes out of your day and can cost up to £50, but that could be a small price to pay for peace of mind. If you receive the all-clear, all you’ll have wasted is a relatively small fee (compared to the car’s full purchase price) and a few clicks on your keyboard. On the other hand, if you skip the HPI check but then discover the car has been stolen, for example, you could end up losing the car - and the thousands of pounds you paid for it - if the police come knocking.
 
It's especially important to consider an HPI check when you’re buying from a private seller. These transactions operate based on buyer beware, meaning you’re not automatically entitled to your money back if there’s an issue with the car that you didn’t notice when you bought it. You might also not be able to track down a single individual (they can run, and they can hide) if there’s an issue compared to a franchised dealership with a permanent forecourt. 
 
Ultimately, it’s all about risk and reward. While there are always some risks associated with buying a used car, an HPI check can go some way in safeguarding against some of the most serious ones.