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Car finance can be a difficult concept to get your head around. In this guide we walk through the process of selling your car if it does have outstanding finance.
Macklin Motors

If My Car's on Finance, Can I Sell It?

If My Car's on Finance, Can I Sell It?

Car finance can be difficult to understand, despite the fact most of us use it.

The legal documents can be lengthy and the thought of flicking through hundreds of pages to find out if you can still sell your car with outstanding finance could take an age! 

That’s why we’ve pulled together this handy guide to help.

Can I sell a financed car? 

Even if you still have finance payments left on your vehicle, you are still able to sell your car. At Macklin Motors, we will still buy the car when you owe more finance than the value of the car, if it is on a Hire Purchase (HP) or a Personal Contract Purchase (PCP) loan. However, the stipulations do change slightly depending on what type of finance you have taken out. 

Read on to find out more. 

Hire Purchase Finance 

With a Hire Purchase, you don’t legally own your car. The car is owned by the lender, until all payments have been made. This means that if you want to sell the car, you will have to contact your finance company to arrange an early settlement. They will send you the settlement price within a few working days and once you have paid this, you will be able to sell your car.  

Personal Contract Purchase Finance 

For a Personal Contract Purchase loan, you need to have paid all the payments or the settlement fee to be able to sell your car. 

If you have paid over half of the finance owed, you can settle the outstanding balance early. However, if you haven’t paid over half, you will have to pay the difference. 

Personal Loan

With a Personal Loan, you can sell the car whenever you like as the vehicle is yours from the start. However, if you haven’t finished paying off the loan before you sell the car, keep in mind that you will have to continue making payments until you have repaid what is owed in full. 

Great! Now to sell my financed car

If you choose to sell your car to Macklin Motors, we will pay any outstanding HP or PCP payments for you. 

All you need to do is request a valid settlement letter from your finance company which will have your agreement number, the amount outstanding and the validation date. You will then need to bring this along to your appointment with us. We will then make arrangements to settle your balance and deduct the settlement amount from the amount paid to you for your car. 

Find out more information about cancelling your finance, or if you’re ready to sell your car with us at Macklin Motors, visit our Sell My Car page to start your valuation.

Start Your Valuation