How to Sell a Leased Car
If your car is on Hire Purchase or Personal Contract Purchase, we can buy it now and settle the finance with the lender. Personal Contract Hire (true lease) cannot be sold. The sections below explain how to identify what you have and what to do next.
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First, work out what kind of finance you have
There are three main agreements people in the UK call leases:
- Hire Purchase (HP). You own the car at the end of the agreement once the final payment is made.
- Personal Contract Purchase (PCP). You can either pay a balloon and own the car at the end, or hand it back.
- Personal Contract Hire (PCH or true lease). You never own the car. You rent it for the term and hand it back.
The agreement document will tell you which one applies. Look for the headings Hire Purchase, Personal Contract Purchase or Personal Contract Hire.
Selling a car on HP or PCP
Both can be sold the same way. The car is technically owned by the finance company until the agreement is cleared, so you cannot sell privately. You can sell to an online car buyer or a dealer who will settle the finance directly with the lender.
The process:
- Get a current settlement letter from your finance company.
- Get a quote on the car.
- If the quote is higher than the settlement, the difference is paid to you.
- If the quote is lower, you cover the shortfall.
- The car is collected, the lender is paid, and ownership passes to the buyer.
For more detail on this, see our guide on selling a car with outstanding finance.
Selling a car on PCH
You cannot sell a PCH car because you do not own it. The car belongs to the leasing company throughout the agreement. There are two main routes if you need to exit early:
- Early termination through the leasing company. You contact them, they tell you the cost to end the agreement early. This is usually a percentage of the remaining payments and can be expensive depending on how far through the term you are.
- Lease takeover. Some specialist sites match drivers who want to exit a lease with drivers who want a short term lease without paying the deposit. The original lessee transfers the agreement, the new driver picks up the remaining payments. The leasing company has to approve the transfer.
Common reasons people want to exit a lease early
- New job means longer commute and higher mileage charges at the end of the term
- Family change, such as a new baby or separation, means a different size car is needed
- Financial pressure
- The car is no longer suitable
In each case the right route depends on whether you own the car (HP or PCP) or not (PCH). If you are not sure, look at your agreement.
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Ready to sell or exit?
HP or PCP, get an instant figure on the tool. PCH, contact your leasing company first about early termination or a lease takeover.
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No sign up. No email. No phone details until you decide to go ahead.