More people than ever are using finance schemes to buy new and used cars. But what happens when a person wants to sell up or trade-in before they've finished paying the outstanding amount on their contract?

It’s a question we receive time and time again at My Car Credit, so here’s everything you need to know before listing the car for sale.

Can I sell a car with outstanding hire purchase finance?

The short answer is unfortunately not. Until you settle the outstanding fees, the car belongs to the lender and isn’t yours to sell. What’s more, if you tried to make a sale without telling the buyer about the existing finance agreement, you could face severe penalties including car repossession, court proceedings and fraud charges.

However, you can work around these stipulations by contacting your finance company and asking them for a settlement figure. Once you’ve paid this, which amounts to the full sum left on your contract, the car will legally be yours to sell.

A word of warning

If you take the settlement route, it could end up costing you more money than expected thanks to early repayment and administration fees. Check with your lender beforehand to factor in these additional costs before making a final decision.

Another viable option is to visit a car dealership. Provided the settlement amount is less than the car’s total worth, you can put the difference towards a deposit for a new set of wheels. Once you’ve checked the figures, you can get a quote for a new finance deal and arrange monthly repayments with your lender.

Can I sell a car with an outstanding personal contract purchase?

Just like hire purchase agreements, the finance company legally owns the car when you take out a personal contract purchase agreement. 

If you wanted to sell, you must follow the same route of acquiring ownership through settlement beforehand.

What about a personal loan?

Personal loans work differently to car finance agreements. Assuming you paid for the car in full, you’re the legal owner of the car, and there are no restrictions when it comes to selling. 

Just remember, you’re still liable for the monthly repayments on your personal loan once you’ve handed over possession.

Voluntary termination

Some people look to sell their car because of difficulties keeping up with monthly repayments. However, in this case, an easier option could be voluntary termination.

Provided you have covered at least 50% of the total cost, and your contract includes a voluntary termination clause, you should be able to return the vehicle stress-free without making any further payments.

Are you looking for a car finance deal?

At My Car Credit, our goal is to make securing car finance as simple and accessible as possible, whatever your credit score or budget.

To find out how we can help you, give us a call on 01246 458 810 or drop us an email at One of our knowledgeable team members will get back to you as soon as possible.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!