Updated 8 July 2026
Can you sell a car you still owe money on? Yes — thousands of Australians do it every year. There's one extra step (clearing the loan), but it's straightforward once you know how. Here's how to sell a car with finance owing, safely and without surprises.
What "finance owing" means
If you bought your car with a secured car loan, the lender has a financial interest in it until the loan is repaid. That interest is recorded on the Personal Property Securities Register (PPSR). You can still sell the car — you just can't transfer it fully "clear" until the loan is paid out.
Find your payout figure
The first move is to ask your lender for a payout figure — the exact amount to close the loan today. Compare it to what your car is worth:
| Situation | What it means |
|---|---|
| Car worth more than the payout | You clear the loan and keep the difference — the good case |
| Car worth less than the payout (negative equity) | You'll need to cover the shortfall to clear the loan |
How to sell it, step by step
- 1
Get your payout figure
Ask your lender exactly what's owed to clear the loan, valid to a set date.
- 2
Get a quote for the car
Find out what the car is worth from a licensed buyer so you know where you stand.
- 3
Settle the finance
The sale proceeds pay out the loan first; a licensed buyer can often pay the lender directly.
- 4
Receive the balance & transfer
You're paid any amount left over, the PPSR interest is cleared, and the car is transferred.
Protect yourself
- Be upfront about the finance — buyers will find it on the PPSR anyway.
- Never let the car go until the loan is settled and any balance is paid.
- Get everything in writing — payout, sale price and settlement.
Selling a car that's still on finance?
We handle finance payouts every day — get a free, no-obligation quote.
General information only, not financial advice. Confirm your payout and obligations with your lender.
Frequently asked questions
Can I sell a car that still has finance owing?
Yes. You can sell a car under finance — the loan simply has to be paid out on or before the sale. A licensed buyer can often settle the finance directly with your lender and pay you any balance.
How do I find out how much I owe?
Ask your lender for a payout figure — the exact amount to close the loan today. Because interest accrues daily, request it in writing valid to a specific date.
What is negative equity?
It's when your car is worth less than the loan payout. You can still sell, but you'll need to cover the shortfall to clear the loan and transfer the car.
What is the PPSR?
The Personal Property Securities Register records a lender's interest in a financed car. Buyers check it, so be upfront — a licensed buyer clears the interest as part of the sale.
Is it easier to sell to a licensed buyer?
Much easier. Licensed buyers settle finance payouts every day, clear the PPSR and pay you the balance — all in one documented, same-day transaction.
