Using car finance is a popular way of managing the purchase of a new vehicle, and you can usually secure a car loan quote within minutes from different providers. If you find yourself wanting to change vehicles before the end of your car finance term, you can sell your financed car – but only if you settle any outstanding finances, and only with the approval of your finance provider.

Do you own a car at the end of a car finance term?

There are three types of car finance where you may end the finance term as the legal owner of the vehicle – a personal loan, personal contract purchase (PCP) and hire purchase (HP).

At the end of HP car finance, you will be the legal owner of the vehicle. Once that finance term has ended and you have made all of your repayments, you can then choose to resell the vehicle, as you are its owner.

At the end of PCP finance, you don’t own the car unless you choose to do so, in which case you’ll pay a balloon payment or lump sum. Once you’ve made this repayment, you’re the vehicle’s legal owner, and can therefore choose to resell it.

If you buy the car with a personal loan, then you are its legal owner, and can resell it whenever you choose – just remember to keep making your repayments on this loan.

Is it illegal to sell a car that has finance outstanding?

As described above, there are three types of car finance that enable you to legally own the car at the close of the car finance term. Provided that there is no finance outstanding on this vehicle, then you are free to do with it what you will – including selling it on.

However, if you have a car that still has finance outstanding on it, then you must contact your finance provider before selling it. If you have outstanding finance, that means there are still repayments that you need to make on the car. As such, you are not its legal owner.

If the car has outstanding finance on it, then it is illegal to knowingly sell it on without informing either your provider or the buyer. Failing to disclose that the car still has debts and fees to be settled is fraud, and you may end up prosecuted as a result.

Both the finance provider and the buyer will be impacted should you illegally choose to sell on a car with outstanding finance. The provider may take you to court over unsettled fees and/or breaking your contract terms. Meanwhile, the buyer could see the vehicle repossessed.

Find out more about car finance

If you have any questions about your rights when it comes to selling a financed car that you secured through My Car Credit, our team are on hand to help. Call us on 01246 458 810 or email

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!