Yes. You can usually part exchange a car that still has finance on it. The outstanding finance is settled as part of the deal, and what matters is whether your car is worth more or less than the settlement figure.

This applies to hire purchase (HP) and PCP, where the finance company owns the car until the agreement is paid off. If you bought the car with an unsecured personal loan, the car is already yours and you can part exchange it freely, though you still owe the loan.

How does part exchange work with outstanding finance?

Get a settlement figure. Ask your finance company for the amount needed to clear the agreement today. It is valid for a limited time and is often different from the payments you have left.
Get the car valued. The dealer values your car as it stands today, based on age, mileage, condition and history.
Compare the two. The dealer pays the settlement to your finance company. Anything left over goes towards your next car. Any shortfall has to be covered.

What if my car is worth more than I owe?

That is positive equity. Once the finance is settled, the difference is yours and is normally used as a deposit on the next car, which reduces the amount you need to borrow.

What if my car is worth less than I owe?

That is negative equity. The shortfall still has to be paid. You can pay it yourself, or some lenders will consider adding it to the finance on the next car. Adding it means borrowing more than the new car is worth and paying interest on the old debt, so think carefully. Often the better answer is to wait, keep paying and change later.

Is part exchange better than selling privately?

A private sale may bring a higher price, but you cannot legally sell a car on HP or PCP until the finance has been settled, so you would need the money to clear it first. Part exchange deals with the settlement, the old car and the new car in one transaction. See can you sell a car on finance for the private sale route.

What should I bring?

Your settlement figure and finance agreement number.
The V5C log book, service history, MOT certificate and all keys.
Photo ID and proof of address.

Common questions

Can I part exchange a car on PCP before the end?

Yes. The settlement figure on a PCP includes the optional final payment, so early in the agreement it is often higher than the car's value. The closer you are to the end, the more likely there is equity.

Will settling early cost me extra?

You get a rebate of future interest when you settle early, but the lender can make a limited charge. Your settlement figure already takes this into account. More in paying car finance off early.

Is there another way out of the agreement?

On HP and PCP you may be able to hand the car back through voluntary termination once you have paid half of the total amount payable. MoneyHelper explains the options in its guide to ending a car finance deal early.

Get your car valued in Barnsley

anycolourcar.com is in Barnsley, South Yorkshire. Start with a part exchange valuation, browse the cars in stock or read about finance with us. You can also call sales on 01226 574410. Finance is subject to status and affordability checks. We are a credit broker, not a lender.

This guide is general information, not financial advice. Updated October 2026.

Can You Part Exchange a Car That Is Still on Finance?