If My Car is on Finance, Can I Still Sell it?
Car finance is something that many of us use, but often struggle to fully understand.
- You can sell your car to us even if there is remaining finance on it.
- There are different rules depending on whether it is financed through Hire Purchase (HP) or Personal Contract Purchase (PCP).
- Find out how we can help at Vertu Motors.
Legal documents can be quite lengthy, and trying to work out if you can still sell your car with outstanding finance can be a bit confusing.
That is why we have pulled together this useful guide, to do the leg work for you.
Selling a financed car
If you are looking to sell your financed vehicle, then there’s good news. Even if you have finance payments left to pay, you can still sell your car. At Vertu Motors, we are happy to buy cars with outstanding finance, so long as it is on a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement. However, things do change slightly depending on what type of finance you have taken out.
Hire Purchase Finance
With an HP contract, you do not legally own the car - the lender does until all payments have been made. This means that should you want to sell the car, then you will have to contact your finance company to arrange an early settlement. The settlement price will be sent to you within a few days, and once this has been paid (within the period), you will then be able to sell your car.
Personal Contract Purchase Finance
For a PCP agreement, you will need to have made 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 amount early. However, if you have not paid over half, you will have to pay the difference.
Personal Loan
With a Personal Loan, the vehicle is already yours, meaning you can sell it whenever you like. However, if you have not finished paying off the loan before you sell the car, you will need to complete all the remaining payments.
You can learn more about finance explained in our Finance Hub.
Ready to sell your car?
If you choose to sell your car with us at Vertu 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. This will contain your agreement number, the amount outstanding, and the validation date. Simply bring this letter to your appointment and we will help make any arrangements needed, and deduct this from the amount paid to you for the car.
Find out more about cancelling your finance, or if you’re ready to sell your car to Vertu Motors, visit our Sell My Car page to make a start. Next, you can browse our new and used car offers for all the inspiration you need to find your next vehicle.