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. You make payment to Motorway, and then the dealer makes a payment to Motorway. We combine these funds and pay your finance company
2. You make a payment to the dealer, and the dealer makes the payment to the finance company

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 payment details. If this is a large amount of money, let your bank know – this is so they don’t flag it as a fraudulent transaction. 
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 canceled after you’ve paid, your negative equity payment is refunded promptly.

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.

Which option is best for you?

Both ways to pay are secure and seamless, it will just depend on the process that the dealer who buys your vehicle uses.