However, if you bought your car using a personal loan, you can sell the car whenever you like as you are its legal owner. Their new vehicle could be repossessed by the finance company, however they may allow the buyer to keep the vehicle if it was purchased in good faith this is known in the auto trade as having a good title. The finance provider could take you to court if you don’t settle the debt and fees, and/or for breaking the terms of your contract.

If you don’t tell the buyer, you will have committed fraud and could be prosecuted. It’s illegal to sell a car on finance without telling the buyer that you still owe money on it and without paying off the debt. You can only sell your car once you have finished your contract, made all your monthly payments and paid the option to purchase fee ( Hire Purchase) or the balloon payment ( Personal Contract Purchase) which makes you the vehicle’s legal owner. You can’t sell a car on finance as you don’t legally own it until you have made all your payments. Technically no, not without consulting your finance provider. Read on to find out how you can sell a financed car, and whether it is the right decision for you.

However, if you do want to sell your car, there are steps you can take so you are in a position to do so. While you are making repayments, the lender legally owns the car so you will not be able to sell it. When you buy a car on finance, the name on the contract is yours, but you won’t own the vehicle until you’ve paid the costs in full.

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