Selling With Outstanding Finance - What You Need To Know

Sometimes the car you decide to finance is no longer right for you, whether that be because you can’t afford the monthly repayments anymore, you need to save money, or due to other circumstances.

So, what do you do? You’re not the legal owner of the car, as the finance company or bank that lent you the money owns it, so you can’t sell it. However, there are ways to get around this. 

Is it possible to sell a car with outstanding finance?

Selling a car on hire purchase or personal contract purchase:

With both hire purchase and personal contract purchase, in order to legally sell the car, you have to end the finance agreement early. To do this, you need to get in contact with your finance provider, and ask for a settlement figure. This is an amount that’s determined by the finance company to repay the loan in full, which will usually include early termination fees and potentially other admin fees.

Selling a car on a personal loan:

If you’ve purchased the car using a personal loan, then you’re the legal owner of the car. This means you’re able to sell it whenever you like, however you’ll still have to pay back the monthly repayments.

Selling a car on a lease purchase:

With a lease purchase, or personal contract hire agreement, you don’t have the option to buy the car, so you can’t sell it. Instead, you’re essentially renting the vehicle from the finance lender, so they’re always going to be the legal owner of the vehicle.

What happens if I sell a car with outstanding finance?

If you want to sell a car with outstanding finance, you have to let the buyer know, as otherwise you will have committed fraud and could be prosecuted. 

We buy cars with outstanding finance

Paying the settlement figure to then be able to sell your car isn’t the only solution. 

At Complete Car Buyers you can start by filling in your registration number to get a free, instant quote.

This quote is then valid for 7 days, and we can then arrange an appointment with you to view your car within this time. 

Once we’ve appraised the car in person, our expert assistants will be able to settle your finance at the point of purchasing your vehicle. All you need to do is either bring with you a recent and in-date settlement figure from the finance company or be able to obtain one from them on the date of transfer.

Give us a call if you have outstanding finance on your car and you’re looking to sell today.