Can You Sell a Car with Outstanding Finance?
When you finance a vehicle, the name on the agreement will be yours, but you will not be the legal owner of the vehicle until all of the charges have been paid in full. While you are paying back the loan, the lender still has legal ownership of the vehicle, and you will not be allowed to sell it. Continue reading to learn more about how to sell a financed vehicle and whether or not it's the right option for you.
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Is it possible to sell a car that has unpaid hire purchase (HP) financing?
No, it's impossible to do so since the lender is the legal owner of the vehicle until the loan is paid off. You'll have to terminate the hire purchase contract early if you want to sell the vehicle, which means paying off the remaining balance.
You may be able to return the vehicle if you have paid less than half of the entire cost of the agreement. However, if you've paid more than half of it, you won't be able to give the car back.
Is it possible to sell a vehicle with an outstanding PCP loan?
No. You will not be considered the legal owner of the vehicle until the PCP contract or settlement amount has been fully repaid. If you wish to terminate your agreement before its expiration date, you have two choices.
Option 1: The first is to return the vehicle if you've paid off half of the loan balance in full. Otherwise, you will be required to make up the difference.
Option 2: Paying down the loan early and keeping the vehicle is a second option. If the settlement amount is less than the expense of continuing to make your monthly payments, it may be worthwhile to pursue this option. You will only be able to sell it if the agreed-upon price has been reached.
How can I get the finance term over with as soon as possible?
If you really want to sell the vehicle, you'll have to wait until the financial arrangement is settled before doing so. The good news is that you have the right to terminate a finance arrangement at any time, but you'll need to check the terms and conditions as there are usually fees and charges to pay to terminate the agreement.
This may include an 'early departure fee' in addition to the principal amount you currently owe. Your agreement will also specify the date by which the repayment must be paid - known as the 'settlement date.'
Get in touch with Hilton Garage today
Whether you're searching for used car financing or used vehicles in Derby, you've come to the right place. Remember to get in touch with our wonderful used car supermarket at Hilton Garage if you're selling a car on finance or have questions about how to sell a car on finance today.