How to sell a car on finance (PCP or HP) in the UK
Can you sell a car that still has finance on it? Yes. Here's how settlement figures, equity and lender consent work, step by step.
Written by the SellMyPremiumCar valuation team · Reviewed against live UK market data · Updated October 2026
You can sell a car on PCP or HP finance in the UK, but the finance must be settled first: ask your lender for a settlement figure, sell the car for more than that amount, and the buyer or you pays the lender directly so the title is cleared. Any money left over (positive equity) is yours.
- ≈90%
- Share of UK private new cars bought on finance (FLA)
- 14 days
- Typical validity of a settlement figure
- 50%
- Voluntary termination threshold under the Consumer Credit Act
- £0
- Our fee to handle a settlement for you
Who legally owns a car on finance?
On PCP and HP agreements the lender owns the car until the final payment is made. You're the registered keeper, not the legal owner, so you can't pass on clear title until the finance is settled.
This is why every reputable buyer runs a finance check (an HPI-style check) before paying for a car.
Getting your settlement figure
Contact your lender or log in to your finance account and ask for an 'early settlement figure'. It's usually valid for 7–14 days and includes any interest rebate you're entitled to under the Consumer Credit (Early Settlement) Regulations.
Positive vs negative equity
If your car is worth more than the settlement figure, you have positive equity, which is money in your pocket when you sell. If it's worth less, you have negative equity and must pay the difference to clear the finance.
Premium cars valued on their full specification are more likely to come out in positive equity than generic valuations suggest.
Voluntary termination: the alternative
If you've paid at least 50% of the total amount payable, you can hand the car back under voluntary termination with nothing further to pay, provided it's in reasonable condition. Compare this with your sale value. If you have positive equity, selling is usually better.
Step by step
- 1
Get a settlement figure
Ask your lender for an early settlement figure valid for at least 7 days.
- 2
Value your car
Get a spec-led valuation to see whether you have positive equity.
- 3
Accept an offer
Tell the buyer about the finance. Specialist buyers settle it directly with the lender.
- 4
Receive your equity
Once the lender is paid, any balance is transferred to you.
Glossary
- PCP:
- Personal Contract Purchase: lower monthly payments with an optional final 'balloon' payment.
- HP:
- Hire Purchase: fixed payments, and you own the car after the last one.
- GFV:
- Guaranteed Future Value: the balloon amount on a PCP.
What's your car worth?
Get a free, spec-led valuation in about 60 seconds.
Sources & methodology
Figures are indicative and based on UK market data and official guidance, reviewed by our valuation team. Prices vary with specification, condition and market conditions.