How to Sell a Car Privately with Outstanding Finance

How to Sell a Car Privately with Outstanding Finance

To sell a car with outstanding finance privately, follow these steps: First, understand your finance agreement and the remaining balance. Contact your lender to get the payout figure. Set a fair selling price that covers your debt. Be honest with buyers about the finance situation. Look for a buyer comfortable with handling the finance. Coordinate with the buyer and your lender to ensure the loan is paid off directly by the buyer, with any surplus funds coming to you.

How to Sell a Car Privately with Outstanding Finance

With more than two decades in the cash for cars trade, I’ve seen it all. Now, I’m about to share a nugget of wisdom on a topic that can twist your gears: selling a car with money still owed on it. Let’s keep things clear and easy, just like chatting over a cold one with a mate.

The Starting Line

So, you’ve got a car, it’s served you well, but now it’s time to part ways. There’s just one hitch: you’re still paying it off. Like a snag at a barbie, it’s a common situation, but let’s not burn it. Here’s how you handle it, step by step, without getting your hands too greasy.

If you’re considering selling your car to a company, including your own, our guide on Sell My Car to My Company Australia can offer some insights.

The Nitty-Gritty of Finance Agreements

First off, know what you’re dealing with. That finance agreement you signed? It’s not just paperwork. It’s a promise that you’re sorting the loan before the car changes hands. Understanding this is key, so take a moment to dig out that agreement and give it a read.

Not the most thrilling read, I know, but knowledge is power. And if you’re transitioning from selling a personal vehicle to selling a business vehicle, the stakes and considerations can change.

Clearing the Deck

Your best move? Square things away with your lender. Give them a bell and ask for a payout figure. This is what you owe as of right now. It might give you a bit of a start, but knowing this number is like knowing the rules of the road before you hit the gas. For more tips on making this process easier, check out Easy Way Selling Your Car In Australia.

Setting the Price

Now, you’ve got to be a bit of a tightrope walker here. You need to set a price that’s fair to you and the buyer but also covers what you owe. It’s like trying to hit a six in cricket – you’ve got to aim just right. Do a bit of homework on what your car’s going for these days and pitch it at a price that makes sense. Understanding the process for selling a car can help you navigate this step.

Honesty’s the Best Policy

When you’re putting your car out there, be as clear as daylight. Tell prospective buyers about the finance situation upfront. It’s like telling your mate there’s a rip in the fishing net – it’s just the right thing to do. This honesty builds trust and keeps everything above board. If you’re dealing with an unwanted car, this step is crucial.

Finding a Buyer Who Gets It

You’re looking for a buyer who’s okay with the finance dance. They’re out there, trust me. It might take a bit longer, but like waiting for that perfect wave, it’s worth it. Once you find someone keen and understanding, you’re halfway there. And if your car is less than perfect, our guide on how to sell your wrecked car online might come in handy.

The Handover Hokey Pokey

Here’s where it gets a bit like a dance. You, the buyer, and your lender need to coordinate. The buyer pays the lender directly to clear the loan, and any leftovers go to you. It’s a bit of a three-way tango, but when everyone knows the steps, it flows smoothly.

Paperwork Party

Don’t forget about the paperwork. It’s not the fun part of the party, but it’s essential. Make sure you transfer ownership properly and notify any relevant authorities. It’s like cleaning up after a bash – not fun, but necessary. For a checklist of what you need to do before selling your car, refer to Things You Need to Do Before You Sell Your Car in Australia.

A Few Extra Tips

  • Keep Communication Open: Like a good yarn at the pub, keep the lines of chat open with your buyer and lender. It makes the whole process smoother.
  • Patience is a Virtue: This might take a bit longer than a regular sale. Be patient, like waiting for your turn at the BBQ.
  • Get Everything in Writing: From agreements with your buyer to confirmations from your lender, if it’s not written down, it’s like it never happened.

Closing Thoughts

Selling a car with outstanding finance? It’s a bit of a sticky wicket, but far from impossible. Just keep things clear, honest, and coordinated. With a bit of patience and the right approach, you’ll be passing your keys to a new owner in no time, with all the i’s dotted and t’s crossed.

Transform Your Car into Cash, Have a car with outstanding finance? We’ve got you covered. Contact Cash For Cars Adelaide at 0431 346 388 for a smooth, straightforward sale. Your satisfaction is our priority.

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.