Sell my car on finance

What do you need to sell your car on finance?

Bring your V5C form for the car selling process.
Include the service history when selling your vehicle.
Ensure you have your driving licence on hand.
Show proof of purchase for a seamless transaction.
If on PCP or HP, provide the finance settlement letter.

What happens when you sell your car on finance?

If you're financing your car through HP (Hire Purchase) or PCP (Personal Contract Purchase), it's crucial to note that the vehicle remains under the finance company's ownership until you've settled the full amount owed. Despite this, selling a car with outstanding finance is a viable option. Reputable car dealers and buying services often have the ability to clear the finance on a car still under contract, allowing you to exit your current agreement and sell your car hassle-free. In essence, while you might not possess the immediate right to sell, practical solutions exist. Trusted dealers and services can simplify the process, providing you with a clear pathway to sell your financed car, even before the contract concludes. Ready to sell? Let us help you navigate the process smoothly.

How can I sell my car with outstanding finance?

Can I sell a car with outstanding HP finance?

If your car is under a Hire Purchase (HP) agreement, the legal ownership remains with the lender until you complete all payments. To sell the car, follow these steps:

• Get a Settlement Quote: Contact the finance company for a settlement figure. You'll receive this within a few working days, outlining the amount and a specified payment period.
• Clear the Amount: Pay the settlement figure within the given period. Once settled, you gain the right to sell the vehicle.

For those who've paid less than half of the total owed, an alternative exists. Utilize Section 99 of the Consumer Credit Act 1974 – 'voluntary termination':

• Return the Car: Pay the remaining instalments to reach at least half of the outstanding value, covering interest and fees.

Selling your financed car becomes straightforward with these steps. Explore our guide for more insights on cancelling your car finance early. Ready to sell? Let's make it happen.

Can I sell a car with outstanding PCP finance?

If you're looking to sell a car under a Personal Contract Purchase (PCP) agreement, it's a straightforward process:

• Complete Repayments: Ensure all repayments, including the final balloon payment and additional fees, are settled.
• Early Settlement: Should you wish to sell mid-agreement, consider paying off the PCP early – especially if the settlement figure is lower than your car's value. Once settled, you become the legal owner, ready to sell as you please.
• Voluntary Termination Clause: Some PCP contracts offer a 'voluntary termination' clause. If you've paid half of the total repayments, returning the car is an option, though you may forfeit potential positive equity.

Remember, the finance company's decision affects vehicle ownership. With a settlement letter and the original V5, selling to us is a hassle-free process. Ready to sell? Let's make it happen.

What are the requirements for selling your car on finance?

1. Obtain a 'settlement figure' from your finance company, which specifies the final amount needed to end the finance contract.
2. The settlement figure is typically valid for 10 days, during which you should sell your vehicle or request a new settlement figure if needed.
3. If the settlement figure exceeds your offer (known as negative equity), you'll need to pay the difference to the dealer, who will settle the amount with your lender.