Selling a Car With Finance Owing in Queensland

Plenty of people still have finance on their car when they want to sell it. That is completely normal, and it doesn’t stop you selling. You just need to do it in the right order, so the buyer ends up owning the car outright.

Why the finance matters

When a car is financed, the lender usually has a security interest in it, recorded on the Personal Property Securities Register (PPSR). Until that loan is paid out, the lender has rights over the car. A careful buyer will run a PPSR check and see it, and most won’t hand over money until they know it will be cleared.

Step 1: Get a payout figure

Contact your lender and ask for a payout figure. It will usually be valid until a specific date, because interest keeps adding up. Ask how they accept payment and how long it takes them to release their interest once paid.

Step 2: Work out your position

Compare the payout figure with what the car is realistically worth. If the car is worth more than you owe, the difference is yours after the loan is paid. If you owe more than it is worth, often called negative equity, you will need to cover the gap from your own money, or talk to your lender about options.

Step 3: Choose how to sell

Selling privately

It can be done, but the buyer needs confidence that the loan will be paid. The usual approach is for the payout to go directly to the lender, with the balance to you, and for the buyer to see written confirmation. Never let a buyer pay you and hope the loan gets sorted later. Make sure everyone is clear on the process before money changes hands.

Selling to a dealer

This is often the simplest option. A licensed dealer can usually pay the lender directly as part of the purchase and pay you any balance. If you are selling to us, tell us about the finance up front. There is a question for it on our sell your car form, and the same applies to a trade-in.

If you’re trading in with us, the payout is confirmed as part of the changeover. How our trade-ins work.

Step 4: Complete the paperwork

Once the loan is paid and the sale is done, complete the Queensland transfer paperwork. Read how to sell your car in Queensland for the steps.

Quick answers

Can you sell a car with finance owing in Queensland?

Yes. The loan needs to be paid out as part of the sale so the buyer gets clear title.

How do I find out how much I owe on my car?

Ask your lender for a payout figure. It will usually be valid until a specific date.

What if I owe more than my car is worth?

You will need to cover the difference, or talk to your lender about options.

Can a dealer pay off my car loan?

Usually, yes. A licensed dealer can generally settle the finance with your lender as part of the purchase.

Selling a car with finance?

Tell us about your car, including the finance, and we will come back to you.