How to sell a car with finance on it ?

[SugarPlumpFairyCakes]

I want to sell my car. I need something cheaper and smaller.

However, there is still money owed on it through the car finance agreement.

Can I legally sell it and pay back the finance or is it not mine to sell? I have asked the bank for a loan to pay off the finance but they have refused me.

The finance company are really not helpful in advising me.

Any help please?

No, at least not when I had a financed car you couldn’t. You have the finance because they know if you default, they can sell the car.

I have returned a car earlier when it was on a lease agreement. There will be something in your contract.

You dont own the car so can’t sell it

yoy can hand it back to the finance company

you can go to a dealer and get a new car and they can sort the finances for you with regards to the old car and the new one

You don't own the car the Finance Company do, you will not be able to sell the car and then pay the finance off.

The only thing you can do is either pay the finance off and sell the car or return the car if you are over 50% through the payments, some companies are 75% so you need to check your agreement.

However you need to be aware that if you return the car you will basically have paid for a car rental and will not receive any funds back from the finance company.

Have you tried any other loan companies apart from your bank ?

You could also go to a dealership, look at something smaller and they might take the car in as a part exchange, they will pay the finance company and add the payment of the finance to the new car you buy, but you will be paying more for finance than your new car is worth.

Well the dealership offered me a very low amount. I got the car valued and I was told it is worth at least twice what the dealership offered me.

Myabe I could line up a buyer. Take out a credit card and pay off the finance, sell the car and pay back the credit card instantly?

I sold my car on PCP to We Buy Any Car. It was no issue at all. I got the final settlement amount from the lender. Handed all that paperwork over when I sold it. They paid off the remaining finance to the finance company and then paid the remainder as a bank transfer to me. It was really straightforward. People must do it all the time because both the finance company and We Buy Any Car were not at all fussed. Seemed completely routine.

You can trade it in at a dealership and they will sort out the finance. There will either be a balance owed or a balance going to wards your car purchase. You can also sell to we buy any car etc and they will clear the finance and you get the balance (assuming it’s not in negative equity).

Yeah some of the car buying companies will deal with settling the finance on your behalf.

I would try a different dealership, as many as you can. My DH had a ford fiesta with finance, a Toyota dealership (Steven eagle) offered him over £1k less than a (marshall ) Skoda dealership to part ex the car

What car do you have ? Have you looked on Auto Trader to see what other cars the same as yours are selling for ?

How long have you had your car, and how far through your finance deal are you ?

So it’s a Mercedes EQV. The big one.

I have paid off 55k (started at 80k). I just don’t want it anymore. So I have 25k left to pay. It’s been independently valued at 40k.

This financial move was my ex h’s btw and I have been left to deal with this. He refuses.

So since the bank refuses to lend me the money to pay off the car finance, I’m a bit stuck. I am loathe to lose any equity in the car because I can use that money to buy another much cheaper car.

It’s three and half years old. Got it in 2022

You've got 3 options

Settle the finance yourself and then sell privately (although very few people will buy a car privately for £40k without manufacturer warranty left on it)
Get a car buying service e.g. Motorway, WBAC to buy the car, they will settle the finance for you and transfer you over the balance
Go to a dealer, they will settle the finance and use the balance to put towards a new car. You might have more luck negotiating the price of the new car rather than the price of your current car

Sorry - 4 options

Call your local Merc franchise dealers. Ask to speak to the used car buyer. See if they will buy it...

It still has warranty on it until next year.

And Merc dealership offered me 17k for it.

Yes you can to a dealer, or through Motorway or WBAC, Car Wow etc. the dealer will pay off your settlement and pay the difference (equity) to you. If you’re selling privately you might find someone who would trust you to do the same but personally I would never buy a car privately without proof the finance has been cleared first. Far too risky. I work in the motor trade.

If you sell to a car sales company they will probably sort it out, but I doubt you will get a very good deal. I don't think you could sell privately without paying the loan off first.

I was able to do a voluntary termination of my car finance at the half way point of my finance contract x

You said you got it valued. Who valued it?

Thank you for your insights. I might ask a relative to help me. Find a private buyer. Set it all up and then ask if relative will pay off the car finance on the understanding they get the money back immediately after the sale.

Or a credit card?

I think you will struggle to sell a car if that value privately. It’s not the right type of car, that value and that new people will be visiting a main dealer or prestige specialist.

Remember it can take quite a few days to get the finance clearance letter from the finance company. So the finance would need to be paid off in advance of getting a buyer. Otherwise if they HPI the car before coming to look at it they will see there is finance on it. Might put them off.

100% agree with this.

I have a car sourcing company - rarely does anyone buy a car this much money privately. They want the added protection buying from a dealer

Ah so I am screwed. Yet again.