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Can You Sell A Car Under Finance?

Purchasing a car is a massive financial decision, and many Australians choose financing alternatives to make their dream automobile a reality. However, life is full of unforeseen twists and turns, and you may consider the sale of a car still finance. This article will walk you through Can you sell a car under finance in Australia, detailing the required factors and stages.

Understanding: Can You Sell A Car Under Finance? 

Can you sell a car under finance in Australia, enabling people to divide their purchases over a specific time? The finance company retains an interest in the vehicle until the debt is returned, whether a secured auto loan or a hire purchase arrangement. It highlights the question: Can you sell an automobile that remains to be financial?

Understanding of Can You Sell A Car Under Finance

1. The Process of Selling a Financed Car: 

Selling a car on financing is conceivable but requires careful legal and financial considerations. Here’s what you should know:

2. Contact Your Lender: 

The first step is to contact your lender to understand the remaining balance on the loan. This balance needs to be before transferring ownership to the Buyer.

3. Valuate Your Car: 

Calculate the current market value of your car. It will assist you in determining a fair selling price that covers the outstanding loan debt.

4. Negotiate with the Buyer: 

Buyers in consideration should be informed that the car is currently being financed. They have two options: pay the outstanding loan debt directly to the financing company or include it in the purchase price.

5. Payout Figure: 

Request from the lender a payment amount that includes the outstanding loan debt, early termination costs, and extra expenses.

6. Settlement Process: 

When the Buyer accepts the conditions, the lender’s payment amount is paid and releases the security interest. That allows you to provide the Buyer with clear access.

7. Transfer of Ownership:

 Complete the documentation required to transfer ownership to the Buyer. That involves submitting the Notice of Disposal to the appropriate governmental authorities.

8. Release of Security Interest: 

The lender will provide a statement certifying the discharge of the security interest. It is an essential document for the Buyer, confirming that they now own the automobile free and clear.

Key Considerations:

  • When interacting with potential buyers, transparency is essential. To avoid misconceptions, disclose the car’s financial position up front.
  • You may need to alter the selling price to account for the remaining loan debt.
  • The transfer of ownership procedure may differ across states in Australia. Familiarise yourself with your state’s rules.


Can you sell a car under finance in Australia is possible, but it takes collaboration with your lender and potential buyers. While the procedure could seem complex, following the legal and financial standards guarantees a perfect transaction. If you find yourself in this position, take the appropriate policies and consider getting expert guidance to make the transaction as smooth as possible for you and the Buyer.

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