Written by: Sol, a local car wrecking business operator.
About the author: Sol is a NZ-based car wrecker and the owner of a local auto recycling business with over 12 years of hands-on experience in buying, dismantling, and valuing vehicles across New Zealand. He’s passionate about helping Kiwis get fair, transparent offers for their unwanted cars while promoting responsible car recycling.
Summary
Yes, you can sell a car that is financed in New Zealand. The “safe way” is simple:
1. Get a settlement figure from your finance company
2. Check whether there’s a security interest on the vehicle (PPSR)
3. Structure payment so the finance company gets paid first, then you receive any remaining balance
4. Complete your NZTA Notice of Disposal straight after sale
If you’re in Hamilton, Tauranga, Rotorua, or Whakatāne, we can usually make this painless: we’ll quote, coordinate the settlement steps, pick up same-day (where available), and handle the admin, avoiding the Marketplace drama.
Can you sell a car that is financed?
Yes. This is a daily situation in NZ, people sell financed cars when they’re upgrading, moving, dealing with repairs, or just cutting costs.
The key thing to understand is this:
- Some loans are secured against the car (a security interest can show on PPSR).
- If there’s a security interest, buyers want proof the finance will be settled properly (and honestly… fair enough).
Selling a car that isn’t paid off: what actually matters
When you’re selling a car that’s still financed, there are two common realities:
1. You have positive equity (good news)
The car is worth more than what you owe.
- Finance gets paid out
- You keep the leftover
2. You have negative equity (the annoying one)
You owe more than the car is worth.
- You’ll usually need to top up the shortfall to fully settle
- Or choose a path that works with your lender (this varies by lender and loan type)
Either way, the process still works, it just needs to be handled cleanly.
How to sell a car with finance owing
This is the best summarised approach based on what NZ finance/vehicle advice sources consistently recommend: confirm the outstanding amount, pay the finance provider directly, then pay the remainder to the seller.
Step 1: Get your settlement figure (payout quote)
Ask your finance company for:
- the settlement figure (and what date it’s valid to)
- payout instructions (where funds must be sent, and what reference to use)
- any fees that apply
Buyer tip: settlement amounts can change day-to-day, so use a current figure.
Step 2: Check for a security interest (PPSR)
If the vehicle is secured, buyers will often check PPSR before paying. It’s normal.
Step 3: Choose a safe payment structure
The safest, most common structure (especially private sales) is:
- Pay the finance company directly for the settlement amount
- Pay any remaining balance to the seller
This protects everyone: seller, buyer, and lender.
Step 4: Complete NZTA ownership steps straight away
After sale, notify NZTA using the online “Sold or disposed of a vehicle” / Notice of Disposal flow.
If you want a simple walkthrough, use our guide: How to change car ownership in New Zealand (step-by-step) ↗.
Step 5: Keep proof (don’t rely on memory)
Keep whatever confirmation your finance company provides (receipt, confirmation email, settlement confirmation). That’s your peace-of-mind folder.
“How to sell a car that is financed” - your options (and who each suits)
Option A: Private sale (max price potential, max hassle)
Pros:
- best chance of the highest sale price
Cons:
- timewasters, tyre-kickers, ghosting
- the finance part scares some buyers
- you must structure payout correctly (finance paid first)
Option B: Trade-in at a dealer (simple, not always best money)
Pros:
- usually smoother admin
Cons:
- trade-in offers can be lower, especially if the car needs work
Option C: Sell to an experienced vehicle buyer (fast + controlled)
Pros:
- quick decision, quick pickup
- less admin and fewer “randoms”
- finance steps handled in a structured way
This is what we do all day and it’s a good fit if you’re over the back-and-forth.
If you want the simplest start, these two pages help:
We buy more than cars (and finance comes up a lot with these)
Finance isn’t just a “small car” thing. We regularly see money owing on:
- Commercial vans (tradie vans, courier vans)
- Utes (work utes, farm utes)
- SUVs / 4WDs (family + towing setups)
- Trucks / light trucks
- vehicles with issues (engine, transmission, accident damage)
If it’s a car, van, truck, ute, SUV, 4×4, and there’s money owing, the key is simply doing the settlement steps cleanly.
What you’ll need (simple checklist)
To speed everything up:
- rego plate + make/model
- your finance company name
- your settlement figure
- photo ID (common requirement for vehicle transactions)
- keys (all sets if you have them)
- your location (Hamilton / Tauranga / Rotorua / Whakatāne)
Why people choose us instead of selling a financed car privately
Private sale can work, but it’s also where things go sideways:
- people bargain hard because “finance sounds risky”
- deals fall over when buyers ask for proof
- you end up giving your number to strangers and dealing with drama
Our service exists for the no-stress crowd:
- We pay top in the region (up to $12,000 depending on the vehicle)
- Same-day pickup (where available)
- Paperwork handled
- No listings, no meetups, no “is this still available?” messages
Want to see the “no lifting a finger” style process? Read this: How I sold my old car for cash in NZ without lifting a finger ↗.
FAQs
Yes. You just need to ensure the lender/finance is handled properly, commonly by confirming the outstanding amount and paying the finance company directly first.
Yes, same answer. The process depends on whether the vehicle has a security interest.
- Get the settlement figure
- Confirm security interest (PPSR)
- Pay the finance company first, then the remaining balance to the seller
- Notify NZTA right away
Usually, it means the finance gets paid as part of the sale (buyer pays lender directly, then pays the remainder to you).
Yes, but you should be upfront, provide the lender’s settlement figure, and structure payment safely (finance company paid first).
If there’s any chance the car is secured, yes, PPSR is the NZ register for security interests and helps prevent nasty surprises.
Submit the Notice of Disposal / Sold or disposed of a vehicle online as soon as the vehicle changes hands.
Yes, we buy a wide range of vehicles, including commercial and work vehicles, even when there’s money owing.
Hamilton • Tauranga • Rotorua • Whakatāne
If you’re in Hamilton, Tauranga, Rotorua, Whakatāne, and you want the cleanest path:
- send your vehicle details + finance company
- we’ll guide the settlement steps and arrange pickup
