If you’re thinking about selling your vehicle because it’s time for an upgrade or you need some extra cash, we’re here to help. Selling a car that’s been purchased with finance is possible, but there are a few extra things to consider. At Instant Finance, our car loans let your act like a cash buyer at a car yard, but it’s important to remember that if you sell your car on, you still have a responsibility to pay your loan off.
Remember, you can always talk to us about your situation so that we can help you find out what your options are and we’ll see what we can make possible for you.
Things to consider before selling a car on finance
There are a few things that you should take note of before deciding whether to sell your financed car. You’ll need your loan information for this part!
What to consider:
- How much is left on your car loan? You’ll need to contact us or your lender if you’re unsure.
- Are there costs or fees to ending your loan early?
- Can you afford to pay off the loan in full so that you can sell it without any debt tied to it?
It’s a lot easier to sell a car that isn’t on finance, so always consider whether paying off the loan in full is an option for you. If your situation changes and you need to make changes to your Instant Finance loan, we only charge $25 plus any calculated loss if you pay off your loan early, so talk to our friendly team if that’s something you’d like to consider.
Still keen to go ahead? Check whether the car you’re selling is the security for your loan.
To figure out what the next step is in selling a financed car, you need to have a look at whether your car loan is secured or unsecured.
An unsecured car loan is where there’s no personal property attached to the loan. If this is the case for your loan, you can go ahead and sell your car but you’ll still need to pay the loan as normal.
A secured car loan is where the car or another personal property is attached to the loan as security. This means that if you can’t meet the terms of your loan, the secured possession can be repossessed and sold, even if you sell it to someone else. However, here at Instant Finance, we do everything in our power to work with you to avoid this situation.
You can quickly check whether your car is security on a loan through the Personal Property Securities Register – a free to use, public register! Just create an account or log in with your RealMe account and take a look! Otherwise, you can contact us and we can let you know if your car is security on your loan.
If yes – Contact your lender!
If your loan is secured by the car you want to sell, you need to speak with your lender about your options before you sell it. Some options might work for your situation so contact us.
If your loan is secured by a different possession (not the car), you can sell the car as normal but you will still need to keep paying off the loan. Remember, you can’t sell the item that the loan is secured on.
Only looking for an upgrade? You may be able to trade in!
If you want to upgrade your ride and the car you want to sell is the security on your loan, we may be able to help you trade it in for the one you want. The car loan you have will be transferred over to your new set of wheels and the difference can either be paid outright or added to the loan. This is also called a ‘security swap’. How easy!
If you’re looking for a new ride, check out our great range at Easy Driver! They have quality used vehicles for all needs and budgets. And offer a Nil Excess Easy Driver Warranty, so you’ll be leaving the yard with every confidence in your new purchase!
Keep in mind that this could increase the total amount borrowed or how long the loan lasts. Often, your lender will charge a fee to make a change like this to your loan. Here at Instant Finance, we only charge a one-off fee of $50 for changes such as security swaps – no big dents in your pocket here!
If you’d like to find out if a trade-in is possible with your loan, get in touch with us today. You’ll need to speak with one of our friendly staff members if you’re considering this option as it depends on your financial circumstances as well as a few other factors.
Selling because you’re struggling to fulfil your payments?
We’ve all been there! Sometimes cash gets a little bit tight and it’s harder than normal to meet your repayments every month. We know that ‘life’ happens and times can get tough. If you are going through some difficulties, contact us as soon as possible so that we can help! We’ll do everything in our power to work with you and support you through the hard times. There might be alternatives to selling your vehicle to fulfil your repayments.