No you can’t, as the lender is the legal owner of the car until the finance is settled. In order to sell the car, you’ll have to end the hire purchase agreement early. This means you can hand the car back and not make any additional payments, as long as you’ve paid at least 50% of the total cost.

How do I check if there is finance outstanding on a car?

To check how much finance left on a car, enter vehicle registration and perform a full check, giving you a finance agreement date plus the finance company’s phone number.

What does outstanding finance on a car mean?

Outstanding finance occurs when the previous owner still has finance to pay on the car, but sells it on anyway. In doing so, they are fraudulently selling the car onto the next person, without declaring it in any records or communications.

How do I know if my car is HPI free?

There’s no such thing as a Free HPI Check so be extremely cautious of any services that claim to provide an HPI Check Free. A ‘Free HPI Check’ is not genuine and will not provide you with the information needed to keep you protected from car scams and motor fraud.

What happens if I sell a car with outstanding finance?

Before selling a hire purchase vehicle, you must first advise the finance company and request the settlement figure required to repay the loan in full. You must then pay this settlement figure, plus any additional fees, for example early repayment fees and administration fees. Until this is done it does not belong to you.

How often are second hand cars sold in the UK?

It is becoming an increasingly popular option for owners looking to spread the cost of payments, and with over 7 million second-hand cars and vans sold in the UK each year, authorities are seeing a rise in the cases of those sold illegally to unwitting buyers on the private market.

How is a trade in for a new car financed?

Generally speaking, a dealer takes the total value of your trade as well as any cash you may have and uses it as the deposit on your new car that needs to be financed. It often happens that your trade-in is worthless in any case, as a result the full R 120k is normally financed with a deposit being built into the deal to add value for you.

Do you have to pay pre interest on a financed car?

You can pay more than the amount due monthly. It will become a credit in your account. if u owe the bank 120k pre interest, then yes, thats what u need to settle. Occasionally dealers can “load” the new car to help you out if you are a little short, but generally you need the settlement amount.