Selling a Financed Car in Australia: The Complete Guide

Published on June 12th, 2024
Selling a Financed Car in Australia: The Complete Guide

If you're ready to upgrade your wheels or downsize your fleet, you may face one little hitch – your car is still under finance. Don't fret! At Cars4Us, we've got you covered with our comprehensive guide to selling a financed car in Australia. Whether you're eyeing a shiny new ride or simply looking to offload your current vehicle, navigating the process doesn't have to be a headache. Let's dive in and explore everything you need to know about used cars for sale under finance in Australia.

Understanding Your Finance Agreement

First things first, it's crucial to understand the ins and outs of your finance agreement before proceeding with a sale. Take the time to review your contract and familiarise yourself with any terms and conditions related to selling the vehicle. This includes potential penalties for early termination or payout figures required to settle the loan.

Assessing Your Financial Position

Before selling your car to Cars4us, it's essential to assess your financial position and determine whether you're in a position to sell. Ending a car finance agreement early may come with consequences. Typically, you'll be required to pay off the remaining balance on the loan, known as the payout figure. This may include additional fees such as early termination charges or arrears. It's essential to carefully review your finance agreement and consult with the lender to understand the implications before deciding to end the agreement prematurely.

Exploring Your Selling Options

Once you've got a handle on your financial situation, it's time to explore your selling options. When it comes to selling a financed car in Australia, you have a few routes to consider:

Private Sale

Selling your car without going through a dealer allows you to negotiate directly with potential buyers and potentially fetch a higher sale price. However, remember that you'll need to clear the finances before transferring ownership to the new owner and handle any legal and administrative tasks, which can often be burdensome. Which is why we recommend you go through a dealer.

Selling to a Dealer

Another option is to sell your financed car to Cars4Us. We specialise in buying used cars for sale, including those still under finance. We'll handle the payout process and ensure a smooth transaction, allowing you to walk away with cash without having to deal with the stress. We make selling your car simple and affordable.

Trading In

If you're purchasing a new vehicle, you can trade in your financed car as part of the deal. This can streamline the process and eliminate the need to settle the finances separately. However, this method may result in limited negotiation power for the price of your new vehicle, a lower trade-in value, or negative equity if you owe more on your car loan than the trade-in value of your vehicle.

Navigating the Sale Process

Once you've chosen a selling option, it's time to navigate the sale process. If selling privately, you'll need to liaise with the buyer to arrange payment and transfer ownership once the finance is cleared. If trading in or selling to a dealer, the process is typically more straightforward, with the dealer handling the finance payout and paperwork on your behalf.

Find Used Cars For Sale Without The Stress

Selling a financed car in Australia doesn't have to be daunting. With the proper knowledge and preparation, you can navigate the process smoothly and emerge with a tidy sum in your pocket. Whether you opt for a private sale, trade-in, or sell to Cars4Us, rest assured that you're in good hands.

So why wait? Put up your used car for sale today and explore our wide selection of quality used cars for sale, all while minimising the stress of finance. At Cars4Us, we help you find your perfect ride hassle-free.