How to Sell a Car Under Finance In Australia

How to Sell a Car Under Finance In Australia

Selling a car under finance in Australia involves: Determining the Payout Amount, Paying Off the Loan, Transparency with Buyers, Handling the Payment, Documenting Everything, Finalizing the Sale, Clear communication and proper documentation are key to successfully selling a car under finance in Australia.

How to Sell a Car Under Finance

I’ve been knee-deep in cars and their stories for over two decades. In my time, I’ve seen it all from clunkers to classics, and I’ve helped folks say goodbye to their metal mates in all sorts of conditions. Today, I want to chat about a topic that might seem a bit like wrestling an octopus in a telephone booth: selling a car that’s still under finance.

Know What You Owe

First things first, let’s figure out what you’re dealing with. Imagine you’re digging for treasure, but instead of gold, you’re after the exact amount you owe on your car loan. Give your lender a bell and ask for the payout figure. This number is your starting line in the race to sell your car.

Clearing the Finance

It’s like having a backpack full of rocks; you can’t run fast until you dump them. If you’ve got the cash, consider clearing the loan before selling. It simplifies things, making your car as attractive to buyers as a cold beer on a scorching day.

But, if your wallet’s feeling light, don’t sweat it. There’s a path for you too, which we’ll amble down shortly.

Honesty is the Best Policy

When selling, being upfront with buyers about the finance is as important as remembering to put pants on before leaving the house. It’s all about trust.

Let them know you’re in the process of clearing the loan and that their new ride won’t come with any unwanted financial hitchhikers. If you’re wondering about the intricacies of selling a car under certain conditions, our guide on selling a car without roadworthy in Australia might shed some light.

The Handover Hokey Pokey

Here’s where things get a bit like a dance. You and the buyer need to coordinate the payment so that it clears the loan and hands over the car without any hiccups. Timing is everything.

One way to do it is to arrange the payment directly to the finance company, with any leftover dough coming to you.

Or, if the buyer’s feeling as cautious as a cat in a room full of rocking chairs, you might use an escrow service to hold the payment until the finance is cleared, ensuring everyone’s as happy as Larry. This coordination might remind you of the process detailed in how to pay for a car in a private sale in Australia.

Paper Trail Party

Nobody loves paperwork, but in this game, it’s your best mate. Make sure you get all the agreements in writing, including the settlement of the finance and the transfer of the vehicle.

It’s like leaving breadcrumbs for Hansel and Gretel, but instead of avoiding witches, you’re making sure everyone knows what’s what. For more on what needs to be done before you part ways with your vehicle, check out things you need to do before you sell your car.

The Final Countdown

Once the finance is cleared, it’s time to make it official. Notify the relevant authorities that the car has a new captain at the helm. This might vary from state to state, so it’s worth doing your homework to avoid any bureaucratic bellyaches.

If you’re looking for more insights on valuation and getting the best deal for your car, our article on understanding car valuation processes for cash offers in Adelaide could be helpful.


Selling a car under finance might sound as tricky as teaching a kangaroo to skip, but with a bit of know-how and elbow grease, it’s totally doable. Remember, it’s all about clear communication, a bit of coordination, and keeping your eyes on the prize.

And if you’re considering going another route, like salvaging your car for money, we’ve got you covered with our guide on how to salvage your car for money in Adelaide. For a comprehensive overview on selling your car for cash, don’t miss

Get Cash for Your Car in Adelaide Now! Why wait? Call us at 0431 346 388 for a fast, fair, and free quote. Whether it’s running or not, we offer the best cash deals for cars across Adelaide. Let Ezy Car Wreckers handle the hassle for you.

Marcus Oliver

Article By Marcus Oliver

His qualifications and over 22 years experience in the cash for cars industry make him a renowned car valuation expert for vehicles of all conditions. As the Automotive Acquisition Specialist, a dedicated automotive buyer and as a Certified Car Appraiser,, he has shaped the company's narrative, emphasizing sustainable car recycling. His expertise and commitment have solidified Ezy Car Wreckers' reputation in Adelaide.