What happens to your car loan when you sell? This guide explains finance payout, settlement figures, and what to do if you owe more than the car is worth.
A 'finance settlement' or 'payout' is the process of fully repaying a car loan when the vehicle is sold. The settlement figure is the exact amount required to discharge the loan on a specific date.
The payout figure includes:
Finance companies will provide a payout figure directly to you (the borrower) for a specified settlement date. The figure is usually valid for 14–30 days.
When you sell a financed car to Sold Fast:
1. You disclose that there is finance owing in the online form. 2. We make an offer based on the vehicle's market value (independent of finance). 3. You contact your lender and request a current payout letter. 4. You provide the payout letter to us. 5. We pay the lender directly and pay you the balance via Osko — simultaneously on the day of sale.
If the vehicle is worth more than the payout: you receive the difference via Osko. If the payout exceeds the sale price: you would need to cover the shortfall, which we'll discuss transparently before proceeding.
No. Under your loan contract and PPSR law, you're required to settle the finance as part of any sale. Selling without settling is a breach of your loan agreement and transfers an encumbered title — which is illegal.
This is called being 'underwater' or having 'negative equity'. You would need to cover the gap between the sale price and the payout figure from your own funds.
Have money owing on your car? You can still sell. This guide explains exactly how the finance payout process works, what to expect, and how Sold Fast handles it for you.
A PPSR check reveals whether a car is subject to money owing, has been reported written off, or is listed as stolen. Here's what sellers need to know about PPSR before they list or sell.
Sold Fast pays every seller via Osko instant bank transfer. Here's exactly how it works, which banks support it, and what to expect on the day of your sale.