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Selling a Car With Outstanding Finance: 2 Minute Guide

Selling a Car With Outstanding Finance: 2 Minute Guide

We don’t all have the luxury of being free and clear on our cars. Some people will need or want to sell their car while the loan is still being paid off. Is that possible? Can you sell a car with outstanding finance?


The good news is that you can sell a car to a dealership with outstanding finance.


You could sell it privately too, but not having title to the car can cause complications a private buying might not want any part of.


In this situation, you are better off trading in your car or selling it to a dealership. We don’t know many private buyers trusting enough to buy a car without the lien!

Settlement figures


The steps to selling a car with outstanding finance are largely the same as any sale, but with a couple of extra steps.


Before you sell the car, you need to contact the loan company and tell them you’re planning to sell the car and settle the loan.


You’ll want to make sure you’re not liable for early settlement fees on the loan and request a settlement figure. That figure is the amount of money it would take to settle the loan in full.


That settlement figure will typically be good for 28 days or until you make your next loan payment, then it will change.


Selling a financed car to a dealership


Selling a financed car to a dealership is now very similar to a non-financed car.


Prepare it for sale by giving it a good clean inside and out, removing all your personal possessions, tidying up the bodywork and checking everything is in good working order.


Make any minor repairs like changing bulbs, changing wiper blades, having worn tires changed and little things that can make a big difference.


If more work needs to be done, consider the cost of having it done versus the money taken off the sale value by the dealership. Then go with whatever works best for you.


Make an appointment to have the car appraised. We will inspect the car, make sure it’s in roadworthy condition and assess its value.


We will then make you an offer. That offer will reflect any work we need to do to prepare it for resale but will be very competitive.


If you accept the offer, we liaise with your lender to pay off the car loan with the money. The lender will pass lien onto us and if there is money left after the process, we’ll deposit that into your bank.


Paperwork is painless


There is a little more paperwork involved when selling a car to a dealership that still has outstanding finance. As long as you have equity in the car or the cash to make up the difference, it’s just an extra couple of forms and some work for us alongside your lender.


It’s still possible, still fast and still one of the most convenient ways to sell a car!


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