Can I sell my car with outstanding finance?

Can I sell my car with outstanding finance?

Yes, you can sell a car that still has finance owing on it. It's actually one of the most common situations we deal with. The finance company owns a legal interest in the car until it's settled, but that doesn't stop you selling — it just means the loan needs to be paid off as part of the sale.

The main thing to understand is your settlement figure, and how that compares to what your car is worth.

What is a settlement figure?

A settlement figure is the amount needed to pay off your finance agreement in full, right now, today. It's not the same as your outstanding balance shown in your monthly statements — it usually includes an adjustment for early repayment, so it can be slightly different from simply multiplying your remaining payments.

You get your settlement figure by contacting your finance company directly, either by phone or through your online account. It's normally valid for a set number of days, so it's worth getting an up-to-date figure once you're seriously thinking about selling, rather than relying on an old quote.

PCP and HP work slightly differently

How much you owe, and how the numbers work out, depends on the type of agreement.

With Hire Purchase (HP), you're paying off the car's full value in instalments. Your settlement figure gradually falls in a fairly straight line, and once you've paid enough, you'll usually be in a position where your car is worth more than you owe.

With Personal Contract Purchase (PCP), you've generally only been paying off part of the car's value, with a larger balloon payment left at the end. This means your settlement figure can stay relatively high for longer, and it's more common to be in a position where you owe more than the car is currently worth — often called negative equity.

Either way, the principle is the same: whatever your settlement figure is, that amount has to be paid to the finance company before the finance is cleared and the car is truly yours to sell.

What happens if you owe more than the car is worth

If your settlement figure is higher than what you'd get for the car, you're in negative equity. You can still sell, but you'll need to cover the difference yourself — either from savings or by rolling it into a new agreement if you're buying another car on finance. It's better to know this figure upfront rather than be surprised by it partway through a sale.

If you're not sure where you stand, get an instant valuation for your car and compare it against your settlement figure. That gives you a clear picture before you go any further.

How the finance actually gets settled when you sell to us

This is the part people often worry about, but it's simpler than it sounds. When you sell your car to us, we handle the settlement directly with your finance company as part of the sale.

Here's roughly how it works:

• You get your instant online price and accept it.
• You give us your settlement figure and finance company details.
• On the day we collect the car, we pay your finance company the settlement amount directly.
• Any remaining balance — the difference between the agreed price and the settlement figure — is paid straight to you.

You don't need to settle the finance yourself first, and you don't need to wait for a redemption to clear before arranging collection. It's all coordinated on the same day, which avoids the gap where some sellers worry about being without a car but still owing money on it.

You can read more about the mechanics of this on our outstanding finance page, and see the wider process on our how selling to us works page.

What you'll need ready

To keep things moving smoothly, it helps to have the following to hand:

• Your up-to-date settlement figure and finance company details
• Your V5C logbook
• A valid MOT, if applicable
• Service history, if you have it

If you're local, we also collect from Wickford and surrounding areas including Basildon, Rayleigh and Billericay, so collection day itself is straightforward once the paperwork side is sorted.

Common questions

Do I need permission from my finance company to sell? You don't need formal permission, but the finance has to be settled as part of the sale since the finance company has a legal interest in the car until it's paid off. This happens automatically when we settle it directly on collection.

What if my settlement figure changes by the time we collect the car? Settlement figures are usually valid for a set period, so it's worth getting a fresh figure close to your collection date if your original one has expired. We'll always confirm the exact figure with your finance company before completing payment.

Will I get anything if there's money left over after settlement? Yes. If the agreed price is higher than your settlement figure, you keep the difference. It's paid to you directly once the finance company has been settled on the day of collection.