Sell a car with finance owing

Can you sell a car that still has finance on it?

Yes. In New Zealand, most car loans are secured against the car and registered on the Personal Property Securities Register (PPSR). That security needs to be cleared when the car changes hands, which is why private buyers often get nervous when a check shows money owing. When you sell to us, we deal with your lender directly, so the loan is paid out as part of the sale and you don't need to find the money first.

How it works, step by step

1. Get your offer. Send the plate, kilometres and photos through our online offer form, and tell us who the loan is with.
2. Get the settlement figure. With your permission, we ask your lender for the amount needed to close the loan on the day of sale. You can also request it yourself through your lender's app or customer service team.
3. Compare the numbers. If our offer is more than the settlement figure, the difference is yours.
4. Settle on the day. When we collect the car, we pay the lender directly and transfer the balance to your bank account before we leave. We also lodge the change of ownership with Waka Kotahi NZTA, so you're not liable for tolls, fines or rego after the sale.

A worked example

Say we offer $24,000 for your car and your lender's settlement figure is $15,500. On the day, we pay $15,500 to the lender and $8,500 to you. The loan is closed and there's nothing more to pay on it. These numbers are only an illustration. Your offer depends on the car, and your settlement figure comes from your lender.

What if I owe more than the car is worth?

This is called negative equity, and it can happen with newer cars on longer loans, or when a loan included extras such as insurance or a warranty. We'll show you the gap before you commit. You can pay the difference to your lender so the loan is cleared, or decide not to sell. Getting an offer costs nothing either way.

Early repayment costs

Many lenders charge an early repayment fee or adjust the interest when a loan is paid off before the end of its term. Those costs should be included in the settlement figure, so ask your lender for the full amount to close the loan on a specific date, not just the remaining balance shown in your app. Keep making your normal repayments until the sale is done, so the loan stays in good standing.

What to have ready

• Photo ID for each registered owner, such as a driver licence or passport
• Your lender's name and loan account number
• All keys, including spares
• Your bank account details for the balance
• The service book and receipts, which usually help the price

We buy good, drivable cars from 2010 onwards, generally under 150,000 km and worth $8,000 or more, and we collect free anywhere in Auckland. Selling a company or leased vehicle? See fleet and lease defleeting. Selling an EV on finance? See selling your Tesla or EV.