Selling a van to a buyer using finance
Yes, you can sell your van to a buyer who is using finance. It works much like a sale for cash, but the lender pays you, not the buyer. Selling a van this way is simple when your proof is ready.
Our team are finance brokers in Scotland, working across the whole UK. We help businesses buy vans from private sellers. Buying instead? Read our private sale and auction guide.
Can someone buy my van using finance?
Yes. A business can buy your van on finance, even though you are not a dealer. A private seller is anyone who is not a dealer or an auction house. That might be you as a person, or your business selling its van.
It takes a little longer than a sale for cash. The lender checks the van, and who owns it, before it pays. So the same day is unlikely.
How do I price my van?
Look at adverts for vans like yours, sold by private sellers. Match the year, the miles and the condition, and price yours in line with theirs.
Do not copy dealer prices. A dealer often gives a warranty, and help if something goes wrong. A private buyer gets none of that. So they expect to pay a bit less, to cover what they might need to fix.
Do not use an instant buying website for your price either. That is what a trader would pay before adding their profit, so it is too low.
So aim in between: in line with other vans like yours for sale privately.
What should I ask the buyer?
Ask the buyer if their finance is in place, and if their lender can pay a private seller. Ask before you agree a sale.
Then ask what the lender needs from you, so you can get it ready early. Our team talks to sellers early, to make it easy for you too.
Why does the lender want proof the van is mine?
The lender needs to see who you got the van from, and that you paid them. Please do not take it personally. We do not care what you paid for the van, or if you make a profit.
Your first invoice and proof you paid it show this best. Bought the van at an auction? The auction's invoice and your bank statement do the same job.
Do I give the buyer my log book?
Show the log book (the V5C) when the buyer comes to see the van. Give them a copy if they ask. But cover the document reference number on the copy. With that number, anyone could go online and change the owner.
The log book does not prove who owns the van. That is why the lender asks for your invoice too. Once the van is sold, give the buyer the green new keeper slip from the log book. Then tell DVLA online at GOV.UK. Any road tax left is paid back to you.
Who checks the van?
The lender decides how the van is checked. It may look at the van itself, in person or by video call. It may ask our team to check it and send pictures. Or it may ask you to use an app on your phone.
What if I still owe finance on the van?
You can still sell it. The old finance must be paid off first. Your lender can give you a letter saying it is paid. Or the buyer's lender pays it off for you, then pays you the rest.
How do I get paid?
The lender pays you, once its checks are done and the buyer has signed. Hand over the van and the keys once the money is in your bank.
The buyer may wait to pay a deposit until the finance is agreed. That is normal, because a deposit can be hard to get back.
Do I charge VAT when selling a van?
Not usually, if you sell it as a person. Most people are not VAT registered. But you may need to charge VAT, just like a dealer, if you are a VAT registered sole trader. The same goes if your business is VAT registered. Not sure? Ask your accountant.
Frequently asked questions
How long does a sale take when the buyer uses finance?
We reply to the buyer within a day. A private sale can take a little longer. Having your invoice and proof of payment ready speeds it up.
Can a person, not a business, buy my van on finance?
Our van finance is for businesses. Through us, finance for a person needs the vehicle to come from a dealer.
Do I do anything different when the buyer uses finance?
Not much. Have your invoice and proof you paid it ready, and show the van when asked. The lender does the rest.
Is it safe to sell to a buyer using finance?
Yes, when the money comes from the lender. Check it is in your bank before you hand over the keys.
This guide shares what we have seen as finance brokers. It is general information, not financial advice. Every business is different, so base any decision on your own case.
