Finance
Car loan payout letters: how to get and read one before you sell
How to get a car loan payout letter, read every line, check for an early exit fee and work out your equity before you sell, with a worked example.
What would you walk away with?
Selling a car you are still paying off? Put the sale price next to your loan payout figure and see your equity, or the shortfall you would need to cover.
Your result
Enter a sale price and your payout figure to see what you would walk away with.
Get my free valuation
A guide only, not financial advice. Your lender’s payout letter is the figure that counts. Questions? Call 1800 73 55 73.
Selling to us with finance owing? We deal with your lender directly to pay out the loan, then pay you any equity left over. Read more about selling a car under finance, how to read your loan payout letter or what to do if you owe more than the car is worth.
The four numbers that decide it
Payout figure
The exact amount needed to close your loan on a given date, from your lender’s payout letter. It can differ from the balance in your banking app because it may include interest to the payout date and fees in your contract.
Equity
What is left for you once the lender is paid out of the sale price. When you sell to us, it is paid into your bank account before the car is collected.
Shortfall
When the payout figure is more than the sale price (negative equity). The lender has to be paid in full before the car can change hands, so the difference has to be covered at settlement.
Balloon payment
A lump sum due at the end of some car loans. If your loan has one, it is part of the payout figure, which is why equity can be lower than you expect early in the loan.
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Questions about equity and payouts
Straight answers. If yours is not here, call us and ask.
1800 73 55 73Where do I get my payout figure?
Ask your lender for a payout letter, usually by phone, app or online banking. It shows the amount needed to close the loan and the date that figure is valid until. Use that number here, not the balance shown in your banking app.
Is the result what I will actually receive?
It is a guide. The sale price is only certain once you have an offer you accept, and the payout figure changes with every repayment and day of interest. When you sell to us, we show you the numbers before you decide.
What if I have a novated lease?
A novated lease is an agreement between you, your employer and a leasing company, so talk to your employer or the leasing company about ending it before you sell. They can tell you the payout and any fees.
Can I sell my car if I still owe money on it?
Yes. We deal with your lender directly to pay out the loan, then pay you any equity left over. Cars under finance usually take 2 to 3 business days to settle. If you owe more than the car is worth, the difference has to be covered before settlement, and we show you the numbers before you decide.
When do I get paid?
Once we agree on a price, we can often pay a deposit the same day. After an inspection, the balance is paid into your bank account by bank transfer. The car is collected only after you confirm the funds have cleared, so you are never left without the car and without the money.
Get a real number for the sale price
An offer from a licensed dealer, free and with no obligation. Have your payout figure handy and you will know your equity on the call.