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Selling a car with outstanding finance in the UK

selling a car on Outstanding Finance

Selling a car with outstanding finance in the UK can be daunting, but it’s not impossible. In fact, with the proper knowledge and approach, you can navigate this process smoothly and legally. Here’s everything you need to know about sell a  car with outstanding finance and ensuring a hassle-free transaction.

What Happens if I Sell a Car with Outstanding Finance?

Attempting to sell a car with outstanding finances without taking the necessary steps can lead to complications and legal repercussions. In the UK, selling a car with outstanding finance without informing the buyer is illegal. Doing so could result in financial penalties or even legal action. So before selling or buying a vehicle, conducting an outstanding finance check is advisable.

How to Sell a Car with Outstanding Finance

Check Your Finance Agreement: The first step is to review your agreement to understand the outstanding amount and any settlement fees involved. This will help you determine the selling price of your car.

Contact Your Finance Provider: Inform your finance provider of your intention to sell the car. They will provide you with a settlement figure representing the amount needed to pay off the finance agreement in full.

Calculate the Equity: Calculate the equity in your car by subtracting the settlement figure from the car’s current market value. This will give you an idea of how much money you’ll have left over after settling the finances.

Proceed with the Sale: Once you’ve found a buyer, ensure the payment covers the settlement figure. Use this money to clear the finance agreement before transferring ownership to the buyer.

Can You Sell a Car on Finance?

Yes, you can sell a car on finance in the UK. However, it is crucial to follow the legal requirements and inform the buyer about the outstanding finances. Transparency is key to avoiding any disputes or legal issues down the line.

There are four main car financing options, 

  • Personal contract purchase (PCP)
  • Hire purchase (HP)
  • Personal contract hire (PCH)
  • Personal loan (such as from a bank)

Selling a car under PCP, HP, PCH, or personal loan:

PCP: Cars belong to the finance company. Dealers can settle finance for you. Settlement is required before selling.

HP: The car remains with the finance company until the end of the contract. Settlement is needed before selling.

PCH: Rental agreement. Exiting early can be costly. Buying a leased car is not guaranteed.

Personal loan: You own the car outright—repayments made from sale proceeds. Beware of depreciation in the first three years.

How much is my car worth?

Determining the exact value of your car in the UK depends on several factors, such as its make, model, year of manufacture, mileage, condition, and market demand. One effective way to assess its worth is by utilizing online valuation tools. Use The Auto Experts car valuation check to get an instant estimate. It’s a great way to know what price to expect when you’re ready to sell. Sell your car with The Auto Experts! Get competitive offers from trusted dealers in our network without the stress of dealing with unqualified buyers.


If you want to sell your car with outstanding finance, follow the above steps to ensure a smooth and legal transaction. Remember to communicate openly with potential buyers and your finance provider.

Selling a financed car in the UK is possible with careful planning and transparency. Following the necessary steps and legal requirements, you can sell your car with outstanding finance without any complications.

Answering your questions:

Can I transfer ownership with outstanding finance?

Transferring ownership with outstanding finance is not recommended as it can lead to legal issues. The finance must be settled before the ownership transfer.

Will the finance check reveal the remaining balance?

An outstanding finance check usually confirms the presence or absence of finance on the vehicle. It may need to provide specific details about the remaining balance owed.

Are private sales affected by outstanding finance?

Outstanding finance can affect both private and dealer sales. Therefore, it’s crucial to perform a finance check regardless of the type of seller.