Can You Sell a Car with Finance?

Yes, you can sell a car with outstanding finance, but you must follow the correct legal process. Selling without settling the finance first is illegal and can have serious consequences.

Check Your Finance Agreement

First, understand what type of finance you have:

Hire Purchase (HP): You don't own the car until final payment
Personal Contract Purchase (PCP): Similar to HP with a balloon payment
Personal Loan: You own the car, but the loan must be repaid

Get a Settlement Figure

Contact your finance company to get an up-to-date settlement figure. This is the amount needed to pay off the finance completely.

Options for Selling

Option 1: Pay Off the Finance First. If possible, settle the finance before selling.

Option 2: Use Sale Proceeds. If the car's value exceeds the settlement figure, use proceeds to pay off the finance.

Option 3: Car Buying Service. Many car buying services will handle the finance settlement directly.

Negative Equity

If you owe more than the car is worth, you'll need to make up the difference.

Important Warnings

Never sell a car with finance without settling it first. This is illegal and the finance company can repossess the vehicle from the new owner.

Selling a Car with Outstanding Finance