Can you sell a car with outstanding finance?

Using finance is a great way to get access to a new car without having to part with a big lump of money in one go. In fact, the majority of our customers use finance when purchasing a car for this reason.

The caveat of owning a car on finance is that you aren’t the legal owner – the finance company is. Selling a car is therefore a little trickier but here we explain how selling a car with outstanding finance is a lot simpler than you may have heard.

In fact, if you’re thinking about selling your car, we are happy to purchase vehicles with finance agreements and can talk you through the steps – just visit our dedicated valuation website.

Can I sell a car with outstanding PCP finance?

Whilst you may not be the legal owner of the vehicle, that doesn’t mean you can’t start the sale process. What you can’t do is transfer ownership of the car before settling the finance.

The first step is to get a settlement figure, by contacting your finance company. By law they must give this within 12 days. As well as the outstanding capital, the finance company can charge you the lowest of:

The remaining interest.

• 1% of the outstanding amount you need to repay.
• If there are less than 12 months left on your contract, 0.5% of the amount left to repay.
• However, if your outstanding finance is £8,000 or under, you shouldn’t need to pay any extra fees to settle this amount.

Once you have your settlement figure, you will need to pay it within 28 days, otherwise you can continue with your repayments as normal.

Here at Prestige Cars Kent, we're happy to buy your car with outstanding finance and we’ll take away any hassle by guiding you through the process. The settlement amount will be deducted from the amount paid to you for the car. We can even pick the car up from your home, for the ultimate hassle-free experience!

Can I sell a car bought with a personal loan?

Yes, you can. This is simpler than having finance, as you are the legal owner of the car. Of course, you are still responsible for any monthly payments as a result of your loan, but there are no issues with selling your car which was paid with a loan.

Can I part exchange my car when it’s on finance?

Yes! A dealer like ourselves would happily accept a part exchange on finance. If you use a lender that the dealer has an association with, they can help with gaining your settlement figure. Otherwise, because of GDPR, you would have to obtain this.

Once you have your settlement figure, you will then also have your part exchange valuation to see whether you are in positive or negative equity. If you are in negative equity, your car’s value will be less than the outstanding payment.

Currently, with the used car market at an all-time high, it’s a great time to sell. You can check by using our valuation tool, or by calling us directly on 01689 660 385.