Selling a Car with Finance Owing in NZ
Lots of cars in Auckland still have a loan on them when the owner wants to sell. It can be done, but the lender has to be paid out, and it helps to know how that works before you start.
Why finance matters when you sell
When a car is bought on finance, the lender usually registers a security interest against it on the Personal Property Securities Register (PPSR). That interest stays attached to the car until the loan is paid. Selling a car without clearing it is a problem for both you and the buyer.
How a sale with finance owing works
Ask your lender for a payout figure: the exact amount needed to close the loan on a given date. The buyer then pays the lender that amount directly, and pays you anything left over. Once the loan is paid, the lender removes its security interest.
TAG MOTORS can buy cars with money owing. Tell us about the finance when you ask for an offer and send us the payout letter, and we will explain how the payment will be split.
If the car is worth less than the loan
This is common with damaged or written-off cars. You would need to cover the gap yourself before the sale can go through. Talk to your lender early: some will agree to a payment plan for the shortfall.
Common questions
How do I check if my car has money owing?
Search the car on the PPSR, or ask your lender for a statement. Car history reports usually include the PPSR check as well.
Can I sell to a wrecker if there is finance on the car?
Yes, as long as the loan is paid out as part of the sale. Tell the buyer about it up front.
Get an offer for your car today
WhatsApp us a few photos with the make, model, year and suburb. We reply with an offer, book a pickup, and pay you when we collect. 7 days, 7am – 8pm.