If you’re asking, “Can I sell my car if I still owe money on it?” the good news is that the answer is yes! Selling a car with outstanding finance is entirely possible, but it requires some additional steps compared to selling a car outright. At Auto House, we’re here to simplify the process and help you navigate this situation seamlessly. Let’s break it down.
Step 1: Understand Your Car’s Finance Agreement
The first step is to identify the type of finance agreement you have. The most common types include:
- Hire Purchase (HP): You don’t own the car until the finance is paid off in full.
- Personal Contract Purchase (PCP): Similar to HP but with a final balloon payment if you want to keep the car.
- Personal Loan: The car is yours, but you’re still responsible for repaying the loan.
If your agreement is HP or PCP, you’ll need to settle the finance before transferring ownership to the buyer. With a personal loan, you can sell the car, but you’ll remain liable for the remaining loan balance.
Step 2: Request a Settlement Figure
Contact your finance company and request a settlement figure. This is the amount required to pay off your finance in full. Be sure to factor in any early repayment fees or additional charges, however, they should provide this for you.
Step 3: Calculate Your Car’s Value
The next step is to determine your car’s market value. If the car’s value is higher than the settlement figure, you’ll have equity, which you can pocket after paying off the finance. However, if the value is lower, you’ll need to pay the shortfall (negative equity) out of pocket. Remember though, once you contact us we can help determine a price range for you.
Step 4: Selling Through Auto House
At Auto House, we make selling your car – even with outstanding finance – a breeze. Here’s how we help:
- Expert Support: We’ll guide you through the process of selling your car while managing the finance settlement process.
- Hassle-Free Service: If you provide us with the settlement figure, we’ll help you list your car and ensure the sale is handled smoothly.
- Tailored Packages: Whether you’re selling a hatchback or a high-end performance car, we’ll create high-quality listings, take care of photography, and manage the sale from start to finish.
Why Sell Through Auto House?
Selling a car with finance can feel daunting, but with Auto House, you’re in safe hands. We’ll ensure everything is handled professionally, saving you time and stress. Plus, you’ll have the reassurance that your car is being marketed to the right buyers for its true market value.
Common Questions
What happens if I have negative equity?
If your car’s value is less than the settlement figure, you’ll need to pay the difference. You cannot sell a car without first paying off your finance so this will likely have to be paid out of pocket by yourself.
Can I sell a car under a PCP agreement?
Yes, but you’ll need to settle the finance first in the same manner.
Can I sell a car with a balloon payment?
Yes, but you need to make sure that the balloon payment is paid off before ownership is transferred.
Conclusion
Yes, you can sell your car even if you still owe money on it! By working with Auto House, you’ll have a trusted partner to guide you through the process, and ensure you get the best outcome possible. Ready to sell your car? Get in touch today!