If you are considering selling your car, but you have a finance agreement in place, you could be wondering where you stand and even if you can sell the car, here is everything you need to know.
There are a variety of reasons why you may be looking to sell the car that you have on finance, some of the reasons we come across a lot are needed a different vehicle, moving away or a change in financial circumstances. Also, a lot of agreements are four years long, so we do appreciate a lot can happen in that time where things do need to change.
If you are considering selling your car, the finance balance needs to be paid first, before you sell the vehicle. This is because for as long as there is a balance due, the car does not belong to you, it belongs to the finance company. Now, there are a few ways you can do this…
The first way is by using your own funds to pay off the balance. Although this isn’t accessible for everyone, it may be a good short-term solution until you recoup the funds from the sale of the car.
Another way you can sell your car is to have the buyer settle the finance. This works if you are selling to a dealer or car purchasing business, as they can ring to pay the balance before you sell the car to them, meaning you are not selling a car that does not belong to you. In essence, the car is purchased from the finance company by your buyer.
You could also take out a short-term loan to pay the balance before you receive the funds from your car sale. Whatever you choose, make sure you have researched it well and that you are confident in what you are doing, if you need assistance, call us and we can help you.
In many cases, it can be more beneficial to wait until the end of your finance agreement, but we know that this is not always possible. If you are looking for car finance or finance advice, speak to a member of the team at We Finance Any Car.