Selling a caravan with outstanding finance
Outstanding finance is common and it isn't a problem — but it does need to be declared. A caravan on finance isn't fully yours to sell until the agreement is settled, so the settlement figure has to be part of the conversation from the start.
This page explains how settlement generally works. Exactly how your agreement is handled, and when any balance reaches you, is confirmed with you before anything is signed.
What a settlement figure is
A settlement figure is the amount your lender needs to close the agreement early. It isn't the same as adding up your remaining monthly payments — it usually accounts for a rebate of future interest. Lenders will provide it on request, normally valid for a set number of days.
How to get yours
- Contact the finance company named on your agreement, not the dealer who arranged it.
- Ask for a settlement figure and note the date it expires.
- Ask whether any early settlement fee applies.
- Get it in writing — a statement or email is ideal.
Positive and negative equity
If the agreed purchase figure is higher than the settlement, the difference is yours once the lender has been paid — that's positive equity. If the settlement is higher than the purchase figure, the shortfall is negative equity and would need to be covered before the agreement can be closed. Neither situation stops you enquiring; it just needs to be known early.
Types of agreement
- Hire purchase or conditional sale: the lender owns the caravan until the agreement is settled, so settlement must happen as part of the sale.
- Secured loan: similar practical effect where the caravan is the security.
- Unsecured personal loan: the loan is yours rather than attached to the caravan, so you already own the caravan outright — but tell us anyway so nothing is unclear.
What we need from you
- The name of the finance company and the agreement number.
- A current settlement figure and its expiry date.
- The type of agreement, if you know it.
- Whether any payments are in arrears.
You can flag finance in the valuation request and our team will pick it up with you.
Why hiding finance never works
Finance interests are recorded against a caravan's CRiS record, so a buying service will find undisclosed finance during checks. Declaring it costs you nothing; discovering it late costs everyone time. Read more about caravan paperwork and CRiS.
Caravan on finance? Start with a valuation
Tell us about your vehicle and our buying team will come back to you about a possible offer. It's free and there's no obligation to sell.