If the car is worth more than your settlement figure, then it may be worth continuing with your plans to sell your car as, all being well, you should be left with a profit once you sell. You can then compare this with the value of your car to see if it makes sense to pay the settlement and sell. You should also ask your finance provider for a settlement figure.
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You can do this for free by entering some details about your vehicle on an online valuation tool, seeing what similar models are selling for, or by getting a quote from a dealer. To help you work out if paying the settlement figure then selling the car is the right decision, you should first get a valuation for your car. There are many reasons why you might want to sell your car on finance, but selling may not always be the best option. » COMPARE: Find new car finance deals Should I sell my car on finance? Some dealers may pay the settlement figure directly to your lender if it is less than the value of the car, after which they will either pay you the surplus or you can use it for a deposit on a new vehicle. When selling your car to a dealership, if you have outstanding finance, the dealer will require an up to date settlement figure for your car finance. Will a new car dealership settle my outstanding finance? Because the settlement fee has been paid, the new buyer of the car will be the new owner. Once you have paid this you can arrange to sell the car. To be able to sell your vehicle you must pay the settlement figure in full, along with any admin fees. However, it is likely to include early repayment fees and other charges. This figure will normally be cheaper than continuing with your monthly repayments as it won’t include the accrued interest you would have had to pay. Once you have paid this settlement figure, ownership of the car would transfer to you and you are free to sell it if you wish.Ī settlement figure is the amount needed to repay the loan in full, or to settle the agreement between you and the finance company. Whatever type of car finance you have, if you want to sell your car before the end of the contract you will have to contact your finance provider to get a settlement figure and pay it to clear your loan. If you don’t want to wait until the end of your contract to sell your car, you do have some options. What can I do if I want to sell my financed car? You just need to make sure you continue to make the monthly loan repayments. However, if you bought your car using a personal loan, you can sell the car whenever you like as you are its legal owner. Their new vehicle could be repossessed by the finance company, however they may allow the buyer to keep the vehicle if it was purchased in good faith this is known in the auto trade as having a good title. The finance provider could take you to court if you don’t settle the debt and fees, and/or for breaking the terms of your contract.
If you don’t tell the buyer, you will have committed fraud and could be prosecuted.
It’s illegal to sell a car on finance without telling the buyer that you still owe money on it and without paying off the debt. You can only sell your car once you have finished your contract, made all your monthly payments and paid the option to purchase fee ( Hire Purchase) or the balloon payment ( Personal Contract Purchase) which makes you the vehicle’s legal owner.
You can’t sell a car on finance as you don’t legally own it until you have made all your payments. Technically no, not without consulting your finance provider. Read on to find out how you can sell a financed car, and whether it is the right decision for you. However, if you do want to sell your car, there are steps you can take so you are in a position to do so. While you are making repayments, the lender legally owns the car so you will not be able to sell it. When you buy a car on finance, the name on the contract is yours, but you won’t own the vehicle until you’ve paid the costs in full.
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