How do I sell my vehicle with negative equity?

What is negative equity?

Negative equity occurs when the amount you owe on your vehicle finance is higher than the sale price of the vehicle. While this may seem complex, the process to resolve it is straightforward and requires a few clear steps.

 How do you settle negative equity?

There are two ways this can work:

1. If the dealer is using our Motorway Pay service, you will pay the difference to Motorway, who will combine it with the dealer's payment in order to settle your finance.
2. If the dealer is not using the Motorway Pay service, you will pay the difference to the dealer, who will then write off the sum in one go with your lender. For more information, see our FAQ: Selling a Vehicle on Finance: Settlement Guide.

When the dealer or Motorway handles the finance settlement, it can speed up the sale significantly. Dealers cannot resell your vehicle until the finance is cleared, so it’s in everyone’s best interest to pay this off as soon as possible!

If you settle the finance yourself, it may take up to 12 days to receive a settlement letter from the finance house, which will delay the process. 

How does the process work?

If you are paying Motorway

1. Document review: The dealer and Motorway team will review your documents, including finance details.
2. Negative equity notification: You are emailed with the amount owing and a secure link displaying how to make the payment. If this is a large amount of money, let your bank know so they don’t flag it as a fraudulent transaction. Please note - this payment must be made by a bank transfer; we are currently unable to accept any form of credit card payment. 
3. Payment confirmation: Once the negative equity payment is made, you receive an email confirmation.
4. Vehicle collection: The dealer collects your vehicle.
5. Finance payment: The dealer makes their payment to Motorway for your vehicle. Motorway processes the full amount – the dealer's funds and your payment – to the finance company. You both receive confirmation.
6. Refunds: If the sale is cancelled after you’ve paid, your negative equity payment will be refunded.

If you are paying the dealer

1. Document review: The dealer reviews your documents and arranges a collection date.
2. Negative equity payment: You can pay the negative equity directly to the dealer when they collect your vehicle.
3. Finance verification and payment: The dealer verifies the finance information and clears the remaining finance balance.