Selling a car under finance

Selling a car under finance might be a bit tricky! So we hope we can clear up some of your main concerns regarding this process. 

Here's a few things you will need to do as a seller:

Determine how much you owe on the car

The first step is to find out what you still owe on the car. You can simply do that by calling your financial provider or bank. It would also be good while you're on the phone with them whether they have a specific procedure in how you can go about selling your car with finance. 

Determine how you going to pay off that loan

You will need to decide how you will pay off your loan and when. Will you be paying it off before advertising your car, or will you use the buyers money. For many sellers, paying off the car won't be possible without the buyer's money. 

Assuring the buyer the finance has been paid off

If you are using the buyers money to pay off the loan, some buyers won't be comfortable with this type of transaction as they cannot be sure that you will actually pay off the loan once they purchase the car off you. 

To ease a potential buyer's worry, accompany them to the bank where your car is financed and have an employee explain the situation. If the buyer is still uneasy, you may have to use your own cash to pay off the loan, or you may need to find a different buyer. 

You can also provide the buyer with a statement from the financial institution of the exact amount owing, to give reassurance to the buyer that the amount owing is what right amount. Once it's been paid, you can ask for an updated statement to confirm the owing debt has been cleared.

Many banks will accept payment directly from the buyer. You can also have the buyer write two cheques: one to your bank for the pay-off amount, and one to you for the remainder of your deal amount. 

Taking ownership

If the buyer has agreed to pay off the owing amount, they will probably expect the transfer of ownership to take place at this time. Make sure to have all transfer documents and vehicle ready for hand over. 


Most buyers will most likely purchase a history check on your car that will advise them of the finance. Be sure to be upfront and honest about any finance owing on the vehicle. An explanation in your comments section of your advertisement is encouraged, as to not scare away any buyers. 


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