Selling A Car On Finance

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Are you looking to sell your car but still have outstanding finance? We explain how and if you can sell your vehicle.


Can I sell my car on finance?

If you still have outstanding finance on your car, you can still sell your car with GoodBye Car. We can provide a quote to settle your outstanding finance. This will be based on the outstanding finance amount, amount borrowed, length of contract agreement, date your finance agreement began, and monthly payment amount.

Please note, this quote is just an estimate and may not be the exact amount of finance you have outstanding. Once you have provided an in-date letter from your finance company that specifies exact outstanding finance details, we will take that figure into consideration on your overall total. If your car is damaged, or has a private plate, we can also provide insight on this. GoodBye Car have also compiled a list of all the documents you will need to sell your car.


How to sell a financed car?

Before you sell your financed car, you need to consider if your car is financed through Hire Purchase (HP) or Personal Contract Purchase (PCP). If your car is on either of these finance agreements, you cannot sell the car privately as the lender is still technically the owner until you have paid the finance agreement of the settlement figure. Selling the car privately without informing the buyer of the outstanding finance is illegal and could result in you being sued for fraud.

Our free, no obligation, online vehicle valuation is quick and simple to use. Taking under 2 minutes to complete, your instant online valuation is guaranteed for 5 days to ensure you get the best possible price for your car, as well as a quick and easy sales process. We can also help if you are curious about what happens to your insurance when you sell a car.


Can I sell my car on HP?

If your car is on Hire Purchase (HP) the lender will be the owner of the car until the finance is settled/all payments have been made. Once you pay the settlement figure, you will be able to sell the car within a set period of time. You should familiarise yourself with the paperwork and terms and conditions, and attempting to leave the agreement before six months has passed this may impact your credit rating negatively.

Can I sell my car on PCP?

A car on Personal Contract Purchase (PCP) means you can leave the contract early by settling the outstanding finance amount if you’ve paid over half of the full finance amount - including fees and interest - to the lender. However due to the final balloon payment, it is doubtful that you will have paid 50% by halfway through the contract.

If you haven’t paid over half you can still end the contract early by paying the difference, and if you’ve paid a lot more than half you will not receive a refund.


Can I sell my car on a personal loan?

If you have paid the loan in full, then you own the car and you are able to sell it. If the loan hasn’t been paid in full, you can still sell it, but you need to continue the monthly loan repayments.


Can car finance be transferred to another person?

The answer is typically no - but there are exceptions. If you took out car finance on behalf of someone else who was financially unable to obtain credit without letting the lender know, you may be accused of fraud and ‘fronting’ as it is illegal to take out finance for someone else this way.

Some lenders arrange credit possibilities for people with poor credit histories. Parents can act as a guarantor for their children by taking out car finance for them. Those with poor credit histories can add a guarantor who can vouch for them financially to secure a car finance agreement.

An alternative may be to settle the existing debt and take out a new agreement in the other person’s name. It is recommended to let your finance company know of your intentions and ask for help regarding options and starting the process.

Can I cancel car finance?

You have 14 days to withdraw from any credit agreement, including all forms of car finance, due to the Consumer Credit Act. After the 14 days, you cannot withdraw from the contract.


What happens next?

GoodBye Car can help you assess your options and figure out what is best for you. We can provide a quote to settle your outstanding finance which is guaranteed for 5 days. We can also help sell your car if it has no road tax. GoodBye Car are happy to help with any questions you may have.