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Can I sell my car with outstanding finance?

Looking to sell your car? You may be wondering if any outstanding finance will hold you back.

You’d be pleased to know that this is not the case. Carry on reading to find out what you need to do to sell your car with a finance agreement in place.

Key Takeaways

Selling a Car on PCP Finance
Selling a Car on Hire Purchase Finance
Selling a Car on Personal Loan Finance

1- PCP (Personal Contract Purchase) Finance

This is one of the more affordable methods of financing a car and, as a result, over 50% of new vehicles are financed using PCP. It is important to know that your PCP finance agreement must be settled with your finance company before you sell your car privately. The car will still belong to the lender, so you will not have the right to sell it.

If you no longer want your car, then you don’t need to worry. Settling your PCP agreement is easy. The finance lender will just need to be contacted for them to provide the settlement figure.This settlement figure will include the optional final payment, enabling you to own the car once this is paid.

However, if you’re looking to sell your car with us, then we can do this all for you! Once happy with how much we’d offer for your car, we will reach out to your finance provider and get the settlement figure the same day. We will then pay this off with the value of your car, and if you have any equity, this will be paid on the same day. Simple!

2 – Hire Purchase

Like PCP, you cannot sell your car privately if you’re within a HP agreement. However, you are able to end this agreement early by settling the finance agreement, where you will then own the car. Unlike PCP, which requires a final lump sum to own the car, HP payments made are secured against the car, so you will own this once your final payment has been made.

When you look to sell your car with us, we can place a request to settle your finance agreement the same day. We would then pay off this amount for you with the value of your car. If your car is worth more than how much was owed in your finance agreement, then this equity will be paid to you the same day.

View our post – How to transfer car ownership

3 – Personal Loan Finance

Personal loans work slightly differently to PCP and HP finance as they are usually not tied to the vehicle. This means that you can sell the car without paying off this loan. It’s important to note that you will still need to keep on top of your monthly payments if you decide to not pay off the loan in full.

If you have a personal loan that was used to pay for your car, then this can easily be terminated if the loan is paid in full. If you’re looking to sell your car with us, then we can handle this for you. We would contact the provider and pay off this loan with the value of the car we offer you. If there is any equity in the car, this will be paid out to you the same day.