Why does the finance have to be settled?
With hire purchase (HP) and personal contract purchase (PCP), the money still owed has to be paid off when the car is sold, so the finance is cleared as part of the sale. You don’t have to pay it off yourself first: when you sell to us, we do it for you.
How does it work when I sell to you?
- Tell us on the form. In the condition step, answer yes to the finance question. If you know the settlement figure, type it in. If not, leave it blank and get your price anyway.
- Get your price. For most cars it appears in a couple of minutes. If you typed in the settlement figure, your price page shows what goes to your finance company and what comes to you. If the settlement is more than our offer, you still get your price, and the page shows the difference you’ll need to cover before we can complete.
- We settle it. We pay the settlement directly to your finance company and pay you the difference by bank transfer before the car leaves you.
What is a settlement figure?
Your settlement figure is the amount needed to pay off your finance agreement in full on a particular date. Your finance company gives it to you when you ask. It changes as payments go out, so ask for one for the date you expect to sell.
What if I owe more than the car is worth?
If the settlement figure is more than our offer, there’s a shortfall (sometimes called negative equity). The finance company needs the full settlement to clear the agreement, so you’ll need to cover the difference before we can complete. That doesn’t stop your instant price: your price page shows the exact figures.
| Situation | What happens |
|---|---|
| Our offer is more than the settlement figure | We pay off the finance and pay you the difference by bank transfer before the car leaves you. |
| The settlement figure is more than our offer | You’ll need to cover the difference before we can complete. That doesn’t stop your instant price: your price page shows the exact figures. |
| You don’t know the settlement figure yet | You can still get a price. We need the figure from your finance company before collection. |
What about other kinds of finance?
- Personal loan: a personal loan isn’t usually secured on the car. If yours isn’t, there’s no finance on the car itself, so answer no to the finance question.
- Logbook loan: a logbook loan is secured on the car, so answer yes to the finance question.
- Lease or personal contract hire: the car belongs to the leasing company, so it isn’t yours to sell.
General information only, not advice about your own situation. Your finance agreement sets out what you owe and how it can be settled.
What should I have ready?
The settlement letter (or the latest settlement figure from your finance company) and the usual documents: photo ID that matches the name on the V5C, bank details in your own name, the V5C, all the keys and the service history.