How to Sell a Car with Finance Owing in Tasmania (A Simple Guide)

Selling a car that still has finance owing on it can feel complicated, but it’s a common situation. The great news is that you can absolutely sell your encumbered vehicle legally and safely in Tasmania. The key is to follow a clear, transparent process.

As Hobart’s trusted car buying experts, we handle this process every day. This simple guide will walk you through your options and explain how to sell your car with an outstanding loan, ensuring a smooth and stress-free transaction for both you and the buyer.

First, What Does “Finance Owing” Mean?

Simply put,When a car has “finance owing,” it means a bank or lender still has a financial interest in it. This is officially recorded on the Personal Property Securities Register (PPSR). Therefore, You cannot legally transfer the car’s clear title to a new owner until this loan is paid off.

The most important step for any potential buyer is to get a PPSR certificate, which will show if there is an “encumbrance” (loan) on the vehicle.

Your Two Options for Selling an Encumbered Vehicle

You have two main paths to take, each with a different level of work and risk.

Option 1: The Private Sale (Complex & High-Risk)

Selling privately requires you to manage the entire financial transaction yourself. For a private sale,the process generally looks like this:

1. Get a Payout Letter: You must contact your lender and request a formal “payout letter.” This document states the exact amount required to clear the loan on a specific date.
2. Find a Trusting Buyer: You need to find a private buyer who is willing to navigate this complex process with you.
3. Manage the Payment: The buyer must pay the lender the full payout amount directly. They then pay any remaining money to you. This often requires all parties to go to the bank together and can be very complicated and risky.

Option 2: Sell to a Licensed Car Buyer (Simple, Safe & Fast)

This is the most common and highly recommended solution. A professional, licensed car buyer like Hobart Car Buyers is an expert at handling this process.

Here’s how we make it easy:

1. We Get the Payout Figure: You provide us with your lender’s details and your account number. We contact the lender and get the official payout figure on your behalf.
2. We Give You a Fair Offer: We provide a top-dollar cash offer for your vehicle.
3. We Handle the Payout: We pay the lender directly, clearing the finance instantly.
4. You Get the Difference in Cash: We immediately pay you the remaining balance in cash, on the spot.

This process is completely safe, transparent, and removes all the stress and risk from you. In fact we are the experts when it comes to buying cars with outstanding loans.

Frequently Asked Questions

Can I sell a car if the loan is for more than the car is worth?
This is known as having “negative equity.” In this situation, you would need to pay the difference to the lender at the time of sale to clear the title. We can still help facilitate this process.

How long does it take to clear the title after payout?
Once we pay the lender, they typically remove the encumbrance from the PPSR register within 24-48 hours, which allows for a clean transfer of title.

Is it legal to sell a car with finance owing in Tasmania?
Yes, it is legal, but you must inform the buyer that finance is owing before the sale. Hiding this information is illegal. For more on vehicle sale regulations, always consult the official  Service Tasmania website.

Sell Your Car with Confidence Today

Don’t let an outstanding loan stop you from selling your car. Our team is here to manage the entire process for you, ensuring a safe, legal, and profitable sale.

Contact us today for a free quote on your vehicle, even with finance owing!