Our valuation tech uses live market data to estimate your car’s value accurately.
Get your highest price
We’ll find the dealer who’ll pay the most for your car, with no haggling or hassle.
Free home collection
Complete your sale in as little as 24 hours, with free collection & fast payment.†
Oh, and it’s 100% free
Dealers pay a fee to buy your car. That means it’s completely free for you.
Just sold like a pro 😎
How it works
1. Profile your car
Enter your reg to get an instant valuation based on our latest sales data. We then guide you through making a profile of your vehicle.
2. We get to work
We alert our network of 3,000+ verified car dealers about your vehicle, and invite them to bid for it in a daily online sale.
3. Get your best offer
We’ll present the best offer from the sale for your approval, then arrange a convenient date for your car to be collected.
4. Complete your sale
Receive fast payment† in your bank account before your car is driven away. Congratulations – you’ve sold your car like a pro!
Rated ‘Excellent’ on Trustpilot
3,000+ verified dealers ready to buy your car
Sell my car on finance
Selling a car on finance is becoming more popular every year. Over 85% of cars bought in the UK are now purchased using some kind of finance arrangement, be it PCP or other finance agreement as a way of owning the vehicle. The question is, can you sell a car that’s on finance? The short answer is ‘yes’ and it’s simple to do so. All 3,000+ verified dealers in our nationwide network buy cars on finance all the time, however, it’s worth understanding the process to ensure you get the best possible outcome without any stress or hassle.
When you buy a car on finance, even though your name is on the paperwork, you technically do not own the car. Much like when you have a mortgage on a house, the car is actually owned by the lender until the point you have completed all of your agreed payments. However, you can opt for what is known as a ‘voluntary termination’, this allows you to end a finance agreement as long as you have paid 50% in full and have met certain other requirements (this varies depending on the lender). This then allows you to sell the car.
The important thing to remember when selling a car on finance, is that you’ll need to make sure you are able to repay the outstanding amount (also known as a settlement figure). If the value of your car doesn’t cover the settlement figure, you’ll need to use your own finances to cover the shortfall. Once you have this figure to hand, you are free to talk to potential buyers about selling your car. You can also trade in your car on finance to purchase another vehicle. Most car dealers will clear your finance and will take you through the steps required.
How do I sell my financed car?
Once you have decided that you want to sell your car on finance, the first step will be to get your settlement figure from your finance company. The settlement figure is the amount you are required to pay back in order for your buyer to own the car outright. It’s important to note that you cannot legally sell on the car without having first paid off the settlement agreement. This is because the finance company is still the legal owner of the vehicle. Most car buying companies and dealers will clear any outstanding finance for you before buying your vehicle and will transfer the funds with proof of completion.
All dealers we work with in our nationwide network at Motorway buy cars on finance every day. The finance-clearing process is simple and your buying dealer will guide you through the steps. But if you get stuck for any reason, a member of our sales team is always on hand to help you on the phone or via instant chat. They can answer any questions you may have before the sale is complete.
It usually only takes one or two business days to clear funds with your finance company before the sale is complete. The settlement process is explained in more detail in the next section.
How to settle your car’s finance
Before you sell a car with outstanding finance, you will need to settle any remaining money owed with your finance company. If you are keen to sell your car before your finance agreement ends, you can opt for a ‘voluntary termination’. This will allow you to give the car back to the finance company and not make any additional payments. However, you can only voluntarily terminate if you have paid off at least 50% of the total cost including all interest and fees.
If you choose this route you won’t usually have to pay the interest, but you will have to pay an early exit fee. This is typically either 1% of the outstanding amount or 0.5% in cases where there are less than 12 months to be repaid, but it can vary. The process is usually the same whether you are on PCP or other car finance agreement. If you paid for your car using a personal loan from your bank, then the car is yours already and you are free to do whatever you like with it – including selling it!
The final option for settling car finance is to have it done by a third party. Many car dealers will be familiar with the process of buying cars with outstanding finance, and they will be able to facilitate the process for you. All you need to provide is written confirmation from your finance company of the settlement figure. Once you have agreed on a price for the car, the buying dealer will then contact your finance company and pay them directly. If the car is worth less than the settlement figure, you will need to cover the shortfall.
Tips for selling a car on finance
Is it just about selling your car on finance? There are many things to consider before you rush to sell a car you own that’s on finance. Firstly, consider if you would like to buy another vehicle. If you are considering purchasing a new car then it may be worth handing the car back to the finance lender and opening an agreement for a new car with the same lender. This could save you lots of time with paperwork, and potentially money if they can offer you bespoke rates, as you’ll already be known to your current lender. Remember, you’ll need to have paid at least 50% of your agreement off to do this as a voluntary termination. It may also be worth checking to see if you can find better rates on the market from another finance company.
If you are looking to sell your car because you are struggling to make the monthly payments, you should always talk to your lender first. Just inform them of your situation and why things may have changed. Most lenders are experienced with customers facing financial issues and may be able to help organise an alternative payment schedule that is easier to manage.
If you work out that selling is right for you, make sure you are in receipt of the written settlement figure from your lender. You can get this simply by calling your finance lender and asking them for it if you don’t have it. They should be able to email it over or you can receive it by post.
When selling a car on finance, make sure you have all the relevant documents required to sell to a buyer on hand, this includes the following:
- V5C logbook – for proof of ownership
- Service history – a full service history will lead to better offers for your car
MOT certificate (if your car is over three years old) – the buyer may ask to see your most-recent MOT document
Finally, in order to ensure you get the best possible price for your car, you will need to prepare your vehicle and make sure it is clean and tidy. Don’t give a potential buyer an excuse to knock you down on price. Finally, make sure you have any spare keys ready to handover, and do any minor, cosmetic repairs before you sell to secure the highest possible price.