You bought a car with a loan or a finance agreement, and now you want to sell it. The question is simple: can you sell a car that is not fully paid for? The answer depends on the contract you signed, and on who is named as the owner. This article gives the general picture and tells you what to ask your lender. It does not replace your contract or advice from the lender, and we cannot read your agreement for you. For the overall sales process, see the guide to selling a car in the Netherlands.
First find out who owns the car
A finance agreement can be set up in more than one way. You may have a personal loan that you used to buy the car, and the car is registered to you as owner. Or a finance company may have bought the car and let you use it while you pay, and the company is the owner. The contract tells you which of these applies, and so does the registration card.
The RDW, the Dutch vehicle authority, states that you do not receive a registration code (tenaamstellingscode) if a lease or finance company owns the car. The company receives the code instead. You can see this on the RDW page about the registration certificate. The card has a field for the indication of ownership and one for the holder, so look at both fields and at the letter that came with the card.
If you have the full code in your hands, the car is probably registered to you as owner, but you should still check your contract for any term about selling. If the code never reached you, the lender holds it. Without the code the car cannot be sold, traded in, suspended, scrapped or exported, which means the lender has to take part.
What the lender needs to tell you
Contact the lender before you advertise the car. Ask these questions and keep the answers in writing:
- What is the exact amount needed to settle the loan completely, and until which date is that figure valid?
- Does the contract allow a sale before the end of the term, and are there any conditions?
- Who holds the registration code, and how and when is it released?
- Where does the settlement payment have to go, and what do you need to quote?
- When will the lender confirm in writing that the loan is closed?
Write down the name of the person you speak to. The lender is the only one who can give the real figures, so this article does not give any amounts.
How the settlement works in practice
The sale price and the amount you owe rarely match. Three situations are possible.
- The sale price covers the loan. The loan is paid off from the proceeds, and you keep what is left.
- The sale price falls short of the loan. You have to pay the difference to the lender from your own money. Ask the lender early whether a payment arrangement is possible.
- You can pay off the loan first. You settle the loan from savings, the lender releases the code, and you sell the car as an ordinary car in your name.
In the first two cases the buyer and the lender must be coordinated, because the buyer will not want to pay for a car whose papers a third party holds. A common way to arrange it is to agree a sequence with the lender: the buyer pays the settlement amount to the lender, the lender releases the code or confirms the closure, and the transfer is carried out. Ask the lender what they accept, because they may have their own procedure.
What the buyer needs to see
A buyer wants a car without a claim on it. You can help by showing the lender’s written settlement figure and the lender’s confirmation that the car is released once the amount is paid. The transfer to the buyer’s name follows the normal route. The buyer carries out the transfer online or at an RDW counter, needs to be registered in the BRP, the municipal register, and receives the proof of transfer (vrijwaringsbewijs) for you. The conditions are on the RDW transfer page, and our RDW transfer guide describes them step by step.
Keep the proof of transfer after the sale. It shows that the car is no longer registered to you.
If the code is held by the lender
When the lender owns the car, the code can only be requested by the lender, as the RDW states on its page about a lost registration code. You cannot ask for a replacement yourself. Tell the lender that you have a buyer and ask them to explain the process for releasing the car. A sale of a car that a finance company owns is a decision for the company. Do not agree a price with a buyer before you have heard what the company requires.
Mistakes to avoid
- Handing over the car before the loan is settled and the transfer is complete.
- Telling the buyer that the car is “paid off” without written confirmation.
- Stopping your monthly payments before the lender has confirmed the closure.
- Ending your insurance too early. The RDW expects WA insurance as long as the car is registered to you.
- Ignoring the date until which the settlement figure is valid.
Selling to us
If you want to see what a buyer service would offer, use the sell form and tell us there is outstanding finance. Asking is free, and the paperwork and collection are arranged with you. The lender still has to be involved in the way described above.
Frequently asked questions
Can I sell a car that is not fully paid off?
Sometimes. It depends on your contract and on who owns the car. Ask the lender for the settlement figure and for permission before you sell, and keep their answers in writing.
Why do I not have a registration code for my car?
The RDW says you do not receive a code if a lease or finance company owns the car. The company receives it instead, and only the company can request a replacement.
What happens if the sale price is lower than the loan?
You owe the difference to the lender. Ask the lender what they accept and whether a payment arrangement is possible.
Does the buyer need to know about the finance?
Yes. Tell the buyer before you agree a price, and give them the lender’s written settlement figure so they know how the car will be released.
Who receives the proof of transfer?
The buyer receives the proof of transfer (vrijwaringsbewijs) from the RDW and passes it to you. Keep it as proof that the car is no longer in your name.
