Can I sell my car if it is on PCP?

Yes, but the PCP must be settled as part of the sale. The buyer can pay the lender directly using your settlement figure and pay you any remaining equity.

Will the buyer know my car has finance on it?

Yes. Any reputable buyer will run a history check, which shows outstanding finance. Being upfront avoids delays.

How long is a settlement figure valid for?

It varies by lender, but settlement figures are typically valid for a short window — often somewhere between 7 and 28 days — because interest is calculated to a specific date.

How to Sell a Car With Outstanding Finance (PCP & HP)

The short answer

You can sell a car with outstanding finance, but the finance must be settled as part of the sale because, with PCP and HP, the lender owns the car until the agreement is paid off. Get a settlement figure from your lender, agree a price with a buyer, and have the buyer (or you) pay the lender directly. Any money left over is yours. If you owe more than the car is worth, you pay the difference.

Key points

With PCP and HP, the finance company legally owns the car until you pay it off.
Ask your lender for a settlement figure — it is usually valid for a limited number of days.
The buyer can pay the lender directly, then pay you any remaining equity.
If the settlement is more than the car’s value (negative equity), you must cover the shortfall.
Personal loans are different: the car is yours, so you can sell it and repay the loan separately.

Who owns a car on finance?

Under Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements, the finance company is the legal owner of the car until the final payment is made. You are the registered keeper — which is why your name is on the V5C — but the keeper is not necessarily the owner.

That is why you cannot simply sell a financed car privately and keep paying the monthly instalments. The buyer would not get good title, and the lender could repossess the car from them.

Step by step: selling a car on finance

The process is simpler than most people expect:

Get a settlement figure from your lender (via their app, online account or by phone).
Get a valuation for your car so you know whether you have positive or negative equity.
Agree a price with a buyer who is happy to settle finance — most trade buyers are.
The buyer pays the lender the settlement figure directly, clearing the agreement.
The buyer pays you the difference between the sale price and the settlement figure.
Tell the DVLA you have sold the car and give the buyer the V5C/2 new keeper slip.

What if I owe more than the car is worth?

This is called negative equity and it is common in the first years of a PCP deal. You can still sell — you just need to pay the lender the shortfall so the agreement is cleared. Some people use savings; others time the sale for when the balance has fallen below the car’s value.

Under the Consumer Credit Act, you may also have the right to voluntarily terminate a PCP or HP agreement once you have paid 50% of the total amount payable. This is worth discussing with your lender before selling.

Personal loans are different

If you bought the car with a personal loan from a bank, the car is legally yours. You can sell it like any other car and keep repaying the loan (or use the proceeds to repay it early).

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