Can you sell a car on finance

How do you sell a car with outstanding finance? Can you sell a car with a finance agreement? Can I return my car to a finance company? If, however, you want to sell up and get a different vehicle, then you have two options.

First, you can settle up by contacting your finance provider and requesting a settlement valuation.

If you have the money available, then once you’ve paid the settlement value, the car is yours to do with what you will, and sell however you want. If you do want to sell the car, you can, but you have to settle the finance agreement first. With HP or PCP finance agreements, you are unable to sell the car privately whilst you have outstanding finance as the lender is the owner of the car until you have repaid the finance agreement or paid the settlement figure in full.

Tiggy - in the UK you have a Vcertificate to prove ownership. That is 100% wrong. This figure is the amount that need to be paid to settle the finance. I suggest that you ring the fin.

HPI to see if the car is on finance. No you can’t, as the lender is the legal owner of the car until the finance is settled. In order to sell the car, you’ll have to end the hire purchase agreement early. If you’ve paid off less than half of the agreement’s total cost, you can return the car.

Once you have decided that you want to sell your car on finance, the first step will be to get your settlement figure from your finance company. The settlement figure is the amount you are required to pay back in order for your buyer to own the car outright. The law stipulates that it is illegal to knowingly sell a vehicle before the car’s finance has been paid off.

This is because until the finance against a vehicle has been paid off it is technically still the lender’s property an as I’m sure you’re aware, selling other people’s belongings is very much illegal. Once we have checked the outstanding amount remaining on your vehicle, using the written confirmation from your lender, there are two ways to go about selling a car with outstanding finance.

If you wish, you can settle the outstanding finance yourself at your appointment. Your lender will advise you what you need to do. You can’t sell a car on PCP finance until you’ve repaid all repayments or the settlement figure.

If you want to sell the car midway through your PCP agreement you will need to pay off the agreement early, which may be worth doing if the settlement figure is lower than the value of the car. If you are selling a car with finance still outstanding there are two things you must do before you can legally sell it: Inform the finance company and ask them for the “settlement figure” they’ll need from you to pay off your loan in full.

It is illegal to knowingly sell or dispose of a vehicle that has an outstanding finance agreement, so you’ll need to look at one of the alternative solutions provided above to legally scrap your car.

Begin by contacting your finance company and requesting a settlement figure. This is an amount of money that needs to be paid to the finance company before you are legally allowed to sell your car.

The finance company are obliged to send you an early settlement offer that usually remains active for days. Then your car needs valuing which is super simple with our Sell Your Car tool. If you sell the car for more than the settlement fee, you will be able to pocket the difference.

Selling your PCP car at the end of the agreement. Many drivers with PCP finance don’t even consider selling their car at the end of the agreement, as the alternatives are much easier. Some return the car to the finance company. But sadly, this doesn’t stop people from doing it.

Owning a car that has outstanding finance on it can be a big problem as you will have to prove that you have a legal right to own the vehicle. You will find this difficult as the finance company technically still own the car.

If the car is on hire purchase, then you can give it back to the finance company once you have paid at least half, and you would only normally be left with any arrears or fees you might have accrued. Some forms of finance allow you to return your car early, but there are rules to consider.