Many of us are reassessing their biggest expenses after the costly Christmas period, with 63% vowing to be more financially savvy this year
Four in ten Brits are considering changing cars this year but many are so confused by financial arrangements they don’t know where to start.
New research shows that 28% are unsure how to begin, with 57% unaware that a vehicle can be sold before paying off a car finance loan in full. Meanwhile 20% feel trapped in their current agreement, according to the survey by used-car marketplace Motorway.
The research also revealed that many are reassessing their biggest expenses after the costly Christmas period, with 63% vowing to be more financially savvy this year.
For drivers, this means tackling car costs. Average monthly car finance repayments now stand at £300, but the lack of clarity around the process has left many feeling stuck.
Key sticking points include financial terms. Around 32% of drivers admit they don’t understand what “negative equity” means, leaving many unsure about what they can actually do when it comes to selling a car that still has a finance plan attached. Negative equity, where you owe more on loan than the value of your car, can complicate selling it on.
Financial expert Clare Seal said: “Buying a car using a Hire Purchase (HP) or Personal Contract Payment (PCP) is often criticised, but for many people, it’s a necessity – and it can be a smart financial choice.
“What’s often misunderstood is that you don’t need to wait until your finance is fully paid off to sell your car. Platforms like Motorway make the process straightforward and stress free.”
Once you have secured a settlement figure from your finance provider and got an instant valuation from Motorway, you’re free to list your car in Motorway’s daily auction, with more than 7,500 verified dealers bidding to buy your car.
The winning dealer clears the remaining finance directly with your lender and sends any surplus straight into your bank, making the whole process as easy as selling a car you own outright.
Becky Wells, automotive expert at Motorway, said: “We know that the process of selling a car on finance can seem confusing, with some car owners unaware it’s possible at all.
“We take care of the admin and make the process as simple as possible. The dealers we work with are experienced in buying vehicles that are still on finance.
“If you are considering selling a financed car in 2026, you can do so with complete confidence through Motorway.”
- To find out more about selling your car hassle-free visit Motorway