can I scrap ma car with outstanding finance

To put it simply, no, you cannot scrap a car with finance outstanding. If your car has outstanding finance, you do not yet currently own it. However, if you write off a car with outstanding finance, there are more options available to you than you might think! 


One of the most popular ways of purchasing a car is through finance. Making smaller monthly payments to spread the cost of a car, usually means that people can buy a newer or better car than they first thought. The only problem with car finance contracts is that you're tied into them for a specific amount of time - usually until the car has been fully paid off (with interest)! 

Of course, if something happens to your car while you're still tied into your finance contract, your options can be quite limited. Selling it or scrapping it with outstanding finance can be a real challenge because you don't technically 'own' the car until the final payment has been made. So what are your options if you want to scrap a car with outstanding finance? Let's find out...


What to do if you need to scrap a car with outstanding finance

The most common reason that people decide to scrap their car is that it's no longer roadworthy. If this is the case, and your car still has outstanding finance payments to be made, these are your options:

1 - Make a settlement payment

The first option you have is to contact the company you took your car finance out with. They should be able to provide you with a settlement figure that you can pay to acquire complete ownership of the car and terminate the contract. If you've had your car for a few years already, then the settlement figure might be quite small. However, if you're only a few months into your finance contract, the settlement figure is likely to be quite sizeable. 

2 - Make the car roadworthy again

If you're unable to make a payment to take ownership of your car, the next best option is to find out what would be involved in making the vehicle roadworthy again. You might find that the cost of repairing the car is significantly less than the settlement payment - meaning you can continue to drive the car until your finance contract is complete. Once you've paid off the car, you are free to sell or scrap it as you please.


When you buy a car on finance, it's vital that you read the contract carefully and understand your legal requirements. Scrapping a car with outstanding finance payments isn't an option.

However, once your finance has been settled, we'd be more than happy to take the car off your hands. Start by putting the license plate number and your postcode into our website.

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