How to Sell a Car With Outstanding Finance

Plenty of people want to sell a car that still has finance on it. The good news is you can, and it's usually more straightforward than you'd expect. Here's how it works.

Who owns a car on finance?

If your car is on hire purchase (HP) or a PCP deal, the finance company owns it until the agreement is paid off. That means the outstanding balance has to be settled before ownership can pass to a buyer. Selling it privately without clearing the finance isn't allowed, and a private buyer could lose the car.

Step 1: Get a settlement figure

Contact your finance company and ask for a settlement figure. This is the exact amount needed to clear the agreement on a given date. It's usually a little less than the total of your remaining payments, because you aren't charged interest for the months you no longer need. Settlement figures are only valid for a short time, so get a fresh one when you're ready to sell.

Step 2: Get a valuation

Enter your registration on our valuation page to find out what your car is worth. Comparing the two numbers tells you where you stand.

• Valuation higher than the settlement figure: you have positive equity. We pay off the finance and pay you the difference.
• Valuation lower than the settlement figure: you're in negative equity. You can still sell. You just cover the gap between our offer and the amount owed.

Step 3: We settle the finance for you

Once you accept our offer, we pay the finance company directly using your settlement figure, then pay any balance straight into your bank account at handover. There's no need to find the money to clear the finance first.

What you'll need

• Your V5C logbook
• Your finance agreement number and up-to-date settlement figure
• Photo ID
• Both sets of keys and any service history you have

Selling with finance, made simple

We buy cars, vans and pick-up trucks with outstanding finance every week. Get your free valuation or give us a call and we'll talk you through it.