Selling a car with outstanding finance can seem complicated. You don’t technically own the vehicle until the finance is paid off, so how can you sell it? The good news is that it’s absolutely possible, and we can help make the process straightforward.
At Surrey Car Buyer, we regularly buy cars with finance still owing. Here’s how it works.
Understanding Car Finance and Ownership
When you finance a car through HP (Hire Purchase) or PCP (Personal Contract Purchase), the finance company retains ownership until all payments are made. This means:
- You cannot sell the car without settling the finance
- Selling without settlement is technically fraud
- The new buyer could lose the car if the finance isn’t cleared
However, you can absolutely sell the car as long as the finance is settled as part of the transaction.
How Selling With Finance Works
Here’s the typical process when selling a car with outstanding finance to us:
- Get a settlement figure: Contact your finance company for the current payoff amount
- Get our valuation: We’ll tell you what we’ll pay for your car
- Compare the figures: If our offer exceeds the settlement, you pocket the difference
- We handle settlement: We can pay the finance company directly
- You get paid: You receive any balance owed to you
What If I’m in Negative Equity?
Negative equity happens when you owe more than the car is worth. This is common with PCP deals, especially if the car has depreciated faster than expected or has been damaged.
If you’re in negative equity, selling the car won’t cover the full finance amount. You’d need to pay the difference to clear the finance. In some cases, we may still be able to help – contact us to discuss your situation.
Types of Finance We Work With
- HP (Hire Purchase) – straightforward settlement and ownership transfer
- PCP (Personal Contract Purchase) – we can handle early settlement
- Bank loans – slightly different as you already own the car
Why Choose Us?
Dealing with finance companies can be confusing and time-consuming. When you sell to us:
- We guide you through the process
- We deal with the finance company directly
- Settlement is handled professionally
- You get a clear breakdown of all figures
Get Started
Ready to sell your financed car? Get your free quote today, or learn more about our process.
We buy cars with finance from all across Surrey, including Guildford, Woking, Camberley, and beyond.