Can you scrap a car that's on finance?
It's one of the most common questions we get, and the answer matters: scrapping a car that's still on finance can land you in trouble. Here's the straight version.
The short answer: not until it's settled
If your car is on a Hire Purchase (HP) or Personal Contract Purchase (PCP) agreement, you don't legally own it — the finance company does, until the final payment is made. That means you can't sell or scrap it without their permission. Doing so without settling first can breach your agreement and leave you liable.
How to check
Not sure what you have? A quick HPI or finance check against the registration will show any outstanding finance. If you took the car on PCP, HP or a logbook loan, assume it's financed until you've confirmed otherwise.
Your options
If the car is written off or no longer worth running but still on finance, you generally have a few routes:
- Settle the finance — request a settlement figure from the lender, pay it, and then you own the car and can scrap it.
- Speak to the lender — if the car is a write-off, your insurer and the finance company often deal directly.
- Voluntary termination — depending on how much you've paid, you may be able to hand the car back under the agreement.
Once it's cleared
As soon as the finance is settled and the car is legally yours, scrapping is straightforward — we'll give you a firm price against the reg, collect for free, pay you on the spot and handle the DVLA paperwork.
FAQs
Can I scrap a car on PCP or HP?
Not until the finance is settled — the lender owns the car until the final payment. Clear the agreement (or arrange it with the lender) first, then we can buy it.
How do I find out if my car is on finance?
Run an HPI or finance check against the registration. It'll flag any outstanding agreement and the lender.
What if my financed car is written off?
Your insurer and the finance company usually settle directly. Once ownership is resolved and any balance cleared, the salvage can be sold or scrapped.