If you’re looking to sell a car with finance outstanding, you’ve come to the right place. We pride ourselves in making the sale of your unwanted vehicle as simple and cost effective as possible. With this in mind, we are one of the only companies who offer a way to clear your outstanding finance at the point of sale and sell your car.
Is It Legal To Sell A Car With Finance?
Before you read how to sell a car with finance legally, it’s important that you understand the law surrounding it:
For those looking to sell a car with outstanding finance, the law stipulates that it is illegal to knowingly sell a vehicle before you have finished paying off your car loan. This means that before you can legally sell your vehicle, you will required to pay a settlement figure to the car finance company that will clear your loan in full.
This settlement figure can include early repayment fees and administration fees that are incurred due to the early termination of your finance agreement.
The good news is, we can help you clear that debt and free the vehicle to be legally sold.
How To Sell A Car With Finance
When you use our free price comparison service, we’ll compare prices from specialist buyers all over the UK and offer you top prices for your vehicle. This leaves you with two scenarios
If you are offered a price that is more than the outstanding amount left to settle your finance agreement, we can arrange to pay off your settlement agreement with the finance company directly and allow for the legal sale of your vehicle. This means that your car loan will be paid in full and you’ll be left with any remaining money in your pocket.
If you are offered a price that doesn’t cover the outstanding car finance, you would need to pay off the difference to the finance company before we would pay off the remaining balance of your car loan. This would leave your balance cleared with no remaining money to be payed.
As well as these two scenarios, in certain circumstances where a vehicle has been devalued or damaged, some providers may agree to remove the finance marker from the vehicle and transfer the remaining balance of the agreement onto a personal loan. This frees the vehicle to be sold legally, as it’s ownership is transferred to you.
Our service is free and our advice is impartial, so please feel free to contact us by either enter your details in the form above or by calling us on now 03333 44 99 50.
Important Legal Information
It’s important to note that all finance companies must legally give you a settlement agreement if you ask for it. If your finance company refuses to give you a settlement agreement you can contact the government’s financial ombudsman found at: http://www.financial-ombudsman.org.uk/.
If you can’t pay off the settlement agreement then there is no other legal way of selling your car privately or commercially with finance or hire purchase outstanding.
For more information, please see the video below: