To do this, you’ll need to contact your finance company and ask them for a settlement figure.
If you have the money available, then once you’ve paid the settlement value, the car is yours to do with what you will, and sell however you want. If possible, the best thing to do is to pay your loan off long before selling the car. However, there are two big problems to get around: The lien. The problem with selling a financed car lies in how secured car loans are organised.
Figure out what the car is worth. Selling your car privately generally gets you a higher price than what you would get from a trade-in. Next, time for a tiny bit of maths, subtract the settlement figure from your car's valuation price. Generally, you still have to pay off the loan before you transfer ownership to someone else. Under an owner-financing agreement, you set a sales price, interest rate … The easiest way to do that is to call the car company to ask for the payoff amount. Yes, you can sell a car that still has a loan. How to Sell Your Car When You Still Have a Loan. It’s not impossible to sell a car that’s still under financing, but it can be trickier than selling a car you’ve fully paid off. The loan is applied to the car, not the buyer . All you need to do is enter your registration number and a few extra details to receive a valuation price in minutes! If you owe more than the sale price, you'll have to pay the lender the difference. The finance company are obliged to send you an early settlement offer that usually remains active for 14 days. To sell a car with outstanding HP finance, you’ll have to end your hire purchase agreement early. Find Out How Much You Owe When you take out a loan to buy a car, the bank or lender (for simplicity's sake, we’ll just call it the bank) you're borrowing from gets the title of the vehicle. Selling a financed car to a dealer is necessary in several situations. Step 2: Pay Off the Loan Can I sell a car that’s still being financed? Selling a Financed Car Privately. It's the buyer's responsibility to repay the debt but, because the car forms the basis of the secured loan, the outstanding balance will always apply against the car itself. Once you’ve paid it all off, the cars will be yours to sell. The finance company are obliged to send you an early settlement offer that usually remains active for 14 days. You have two main options when it comes to selling your car with a loan: Selling it to a private individual Trading it in at a dealership With both options, you’re still … A trade-in, combined with new car incentives and rebates, can be a smart move. To begin with, selling a financed car majorly involves two steps: The first being the clearance of your car loan with the bank and getting your hands on an NOC (no-objection certificate) along with two copies of … When you trade it in, the dealership accepting the trade takes over the liability with just a little paperwork.
Once you receive your settlement figure, you’ll have a set period of time to pay it off. If you simply do not need the vehicle and want to sell it quickly, the dealership will make a cash offer to purchase your vehicle. If you still want to sell your car that is financed, here is what you need to do: Call your bank / lender. This is an amount of money that needs to be paid to the finance company before you are legally allowed to sell your car. To sell a car with outstanding HP finance, you’ll have to end your hire purchase agreement early. First, you can settle up by contacting your finance provider and requesting a settlement valuation. Buying a car through a financial institution such as you bank might seem to be the best available option when you are about to go for it, but as time passes by and the need to sell the car arises, you will realize that selling it requires a lot of steps and time.