Can I sell an inherited car on finance?

Can I sell an inherited car on finance?

Yes, you can sell a car on PCP or HP finance after a bereavement. Please note, there are a few extra steps.

Personal loans are not considered vehicle finance and can be managed separately as part of the estate. For leased vehicles, you must pay the lease company and get a V5C in your name before selling.

Contact the finance company 

• Tell the finance company of the death
• Let them know you are going to sell the car to a dealer
• Provide a death certificate and proof of inheritance, such as a will or probate document

Exact requirements can vary between finance companies. They will guide you through their specific processes.

Discuss your options

Generally speaking, you will have the option to:

• Get an up-to-date settlement letter and have a dealership pay the agreement
• Transfer the finance agreement into your name to continue making payments 
• Settle the finance agreement yourself

We recommend getting a settlement figure because our dealers will pay the finance company directly.

You can still do this if you have transferred the finance into your name already, and are currently making payments.

If you recently settled the finance yourself, provide a letter from the finance company as proof.

Request a settlement letter

When you request a settlement letter, your finance provider must legally post or email it within 12 days, but it usually arrives in 1-3 working days.

Requirements for uploading your finance settlement letter

• Settlement letters are usually only valid for 10 days, so it’s best to sell the car as soon as you get it
• If the letter expires before you sell the car, you can request a new one from the lender
• Please upload or email the document in original format (normally PDF)
• We don’t accept screenshots or forwarded emails of your settlement letter.

What about the difference between the balance and the sale price?

If the car sells for more than the amount owed to the lender, you're in positive equity. The dealer will use the sale proceeds to clear the finance and pay you the surplus

• If the sale price is lower than the amount owed, you're in negative equity.
• You can still sell your financed car (subject to your contract), but you'll need to pay the difference to the dealer before they settle the total balance with the lender.