Can I sell a car with outstanding finance?

Have you ever bought a car and down the line, before it has been fully paid for, thought, “I want to sell my car”? It’s not uncommon to change your mind and want an upgrade, especially if a new car has been released and has caught your eye, or if your circumstances have changed and you need to sell. However, if there is outstanding finance, then this could cause issues depending on what kind of financial agreement you have taken out.

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Can I sell my car with outstanding HP finance?

A car that has been bought via a hire purchase cannot be sold with outstanding finance. Until the car has been fully paid for, the lender is still the legal owner, therefore, you don’t have any rights to sell the car. But there are ways around this.

If you have paid less than half of the agreements cost you could return the car. To do this, the rest of the instalments will need to be paid to bring it up to half of the remaining value; this includes any interest and fees. This is called voluntary termination; a legal right that provides a safety net for consumers. It’s not an ideal process since you won’t receive any money for the car like you would if you could sell it, but it could help you out of a tight spot if you need to say goodbye to the car. Unfortunately, if you’ve paid more than half of the agreed cost then it is probably too late, you won’t be able to return it.

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Can I sell my car with outstanding PCP finance?

Similar to HP finance, if you have bought a car via a Personal Contract Purchase you do not own the car unless it has been fully paid for, and therefore, you cannot sell it. A voluntary termination is also available in these circumstances, as long as half of the agreement has been paid.

If you don’t want to opt for the voluntary termination, or you are not eligible for it, it can sometimes work out cheaper to settle the contract early and pay off the remaining cost, rather than continue to pay the monthly instalments. It will also speed up the process to allow you to sell your car.

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Can I sell my car with outstanding PCH finance?

If you purchase a car via a Personal Contract Hire (PCH) or any other form of lease then you cannot sell the car, even once the contract has been paid. This form of contract allows you to only rent the car only; you will never own it. Once the contract expires, the car will be returned to the lender.

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Can I sell my car with an outstanding personal loan?

You’ll be happy to hear that yes you can! If you took out a personal loan to buy a car in full then the car is legally yours and you are able to sell it. However, you mustn’t forget about your loan, which you will still need to continue to pay off.

If you are in doubt as to what you need to do to end your agreement, give your finance company a call to understand the options available, as these can vary from company to company. Once you have sorted out your finances and you’re ready to sell your car, webuyanycar.com will be there to help. Get your free online valuation and sell your car the quick and easy way.

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