What is HPI ?
HPI stands for "Hire Purchase Information" and relates to a simple service provided many years ago for buyers of vehicles to check whether the car they wanted to buy had outstanding finance associated to it.
In simple terms, if a car owner takes a loan out to buy a car, until that loan is paid in full, the car belongs to the company who lends the money.
If that buyer then sells the vehicle without paying the loan off, under British Law, the vehicle still belongs to the loan company, not to the new owner, even though the vehicle would have been purchased in good faith.
The loan company has the right to re-posses the vehicle from the new owner and sell it to recover their loss.
HPI is now a generic term used to reference Car History Reports and is a Trademark of HPI Limited who have been providing these checks for over 70 years.