Selling a car on finance

Can you sell a car on PCP finance? You cannot sell a car with outstanding hire purchase (HP) finance, as the lender is the legal owner of the car until the finance is settled.

Can I advertise Finance on Auto Trader? To sell a car with outstanding HP finance, you’ll have to end your hire purchase agreement early.

To do this, you’ll need to contact your finance company and ask them for a settlement figure.

If you want to get rid of your car on finance because you are struggling to keep up with payments, then your best option is to arrange a voluntary termination. 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. The important thing to remember when selling a car on finance, is that you’ll need to make sure you are able to repay the outstanding amount (also known as a settlement figure).

If the value of your car doesn’t cover the settlement figure, you’ll need to use your own finances to cover the shortfall. Also, you can settle up early and sell the car.

You’ll first need to write to the finance company to provide a settlement figure.

You can then pay the outstanding amount and the car is yours to sell. Once you’ve asked for the settlement figure they’ll get it to you within a few days. After that, you’ll have a set period to pay it off. If you have a car on hire purchase (HP) finance, the lender remains the owner until the finance is settled or all payments have been made.

Once you have obtained the settlement figure and paid it off, within a set period of time, the car will be yours to sell. We Buy Cars with Outstanding Finance 1. Contact your lender. You will need to contact your lender and advise them you are considering the sale of your.

Book an Appointment. The lender is the legal owner of a car bought on Hire Purchase until all payments have been made.

In order to sell the car, you will need to end the agreement early by getting a settlement quote. To get a settlement figure, you will need to contact the finance company asking for one. 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.

On some adverts on Auto Trader, the finance information is provided by the dealer selling the car or lease provider. Where a dealer doesn’t advertise finance on Auto Trader, we use information and a finance example from our partner, Zuto.

With hire purchase, it is the finance provider, rather than the dealer, who is legally responsible if there are problems with the car.

Selling Your Financed Vehicle. It’s not impossible to sell a car that’s still under finance, but it can be tricker than selling a car you’ve fully paid off.

Generally, you still have to pay off the loan before you transfer ownership to someone else. Although you’ll be offered a trade to below-trade price for your car a car buying service is a simple way to sell a financed car.

All car buyer’s services will know if a car has money outstanding. You need to obtain your settle figure and letter and take it with you when selling your car.

This usually entails obtaining some sort of credit in order to pay off a sum that very often amounts to several thousand pounds. The way an HP agreement works is that the car dealer invoices the finance company for the car.

The finance company then pays the dealer for the car and the customer hires the car from the finance company until the very end of the agreement. Whether selling your PCP car makes sense or not will depend on how much you still owe on your finance agreement (including the optional final payment), and the current value of your car.

Unless you put down a large deposit, this is likely to mean that you owe far more than the car is worth in the early stages of the finance agreement. We do this so that no matter who is selling the car, you have the option to look at a monthly finance option.

If you have an average, run of the mill motor and expecting a good private sale price you wont get a lot of interest when it has finance attached to it. But the most vital piece of paperwork is.