If the car is on hire purchase or PCP, you cannot sell it until the finance has been settled, because the finance company owns it until then. You can still change or sell the car: you either pay the settlement figure first, or sell to a dealer who pays the lender directly as part of the sale.

Does the type of finance matter?

Hire purchase and PCP. The lender owns the car until the agreement is paid off. Selling it without settling first breaks the agreement and can be a criminal offence.
Personal loan. An unsecured loan is not tied to the car. The car is yours to sell, but you still owe the loan.
Leasing. A leased car is never yours to sell. Speak to the leasing company about ending the contract.

What is a settlement figure?

It is the amount needed to pay off the agreement in full today. You have a right to ask your lender for it at any time. It is only valid for a limited period, and on a PCP it includes the optional final payment. Ask for it in writing before you do anything else.

What are my options?

Settle, then sell privately. Pay the settlement from savings, wait for the lender to confirm the agreement is closed, then sell the car as its owner.
Sell or part exchange to a dealer. The dealer values the car, pays the settlement straight to the lender and pays you any balance, or puts it towards your next car.
Hand the car back. On HP and PCP you can end the agreement through voluntary termination once you have paid half of the total amount payable.

MoneyHelper covers these routes in its guide to ending a car finance deal early.

What if the car is worth less than the settlement?

That is negative equity, and the shortfall still has to be paid before the finance is cleared. You can pay the difference, keep the car until the gap closes, or check whether voluntary termination would cost you less. If the car is worth more than the settlement, the difference is yours.

What paperwork do I need?

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

When the car changes hands you must also tell DVLA. GOV.UK explains how to tell DVLA you have sold a vehicle.

Common questions

Will a buyer know the car has finance on it?

Yes. Outstanding finance shows up on a vehicle history check, and most careful buyers and all reputable dealers run one. See how buyers check for outstanding finance.

Can I part exchange instead of selling?

Yes, and it is usually the simplest route because the settlement is handled inside one transaction. See part exchanging a car on finance.

Does settling early cost extra?

You receive a rebate of future interest, though the lender may make a limited early settlement charge. The settlement figure already includes both. More in paying car finance off early.

Selling a financed car in Barnsley

anycolourcar.com is in Barnsley, South Yorkshire. Get a valuation through sell or part exchange your car, or call sales on 01226 574410 with your settlement figure to hand. If you are replacing the car, browse the cars in stock. Any new 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 Sell a Car That Is Still on Finance?