# Selling a car with finance still owed: what has to be settled

Source: TugaCarro (https://tugacarro.com/en/vender-carro-com-credito/). Updated: 2026-11-14. ISV calculator: https://tugacarro.com/en/simulador-isv/

Many cars in Portugal are bought on credit, and the loan is usually recorded on the car as retention of title (reserva de propriedade). You can sell, but the retention has to be cancelled. We explain how it works and what we ask for when we buy.

> General information, not legal advice. Check your contract's terms with the lender. No offer is binding until both parties sign a sale contract.

## Short answer

Yes, you can sell. But while there is a loan with retention of title, the car is not free: the lender has a registered right over it. Before we take the car and pay, the loan has to be paid off with the lender and the retention cancelled in the register. We agree the documents with you before any payment.

[Request a valuation of my car](https://tugacarro.com/en/vender-carro/)

## What kind of finance do you have?

| Situation | What it means for the sale |
|---|---|
| Car loan with retention of title | The car is in your name, but with a retention in favour of the lender. The loan has to be paid off and the retention cancelled. |
| Personal loan without retention | The car is free; the loan remains your own debt, separate from the car. |
| Leasing | The car belongs to the leasing company until you exercise the purchase option. Only then can you sell it. |
| Long-term rental (ALD or renting) | The car is not yours. Talk to the company about early purchase or return. |
| Seizure (penhora) | It has to be lifted before the sale; without that we don't buy. |

The registration certificate and a certificate from the vehicle register show whether there is a retention of title or a seizure.

## How a sale with a loan works

1. **Request and inspection** Tell us in the request that the car has a loan. The inspection and offer are the same as for any other car.
2. **Amount owed** Ask the lender for the early payoff amount on the planned date. That way you know whether the offer covers the debt.
3. **Payoff and cancellation** The loan is paid off with the lender, which issues the statement to cancel the retention of title in the register.
4. **Sale and payment** With the car free, we sign the contract and pay by bank transfer to an account in the seller's name.

## Points to watch

- Early repayment fee: some contracts charge a fee for paying off early. Check your contract.
- Timing: the lender's statement and the cancellation of the retention take some time. Allow for it in the sale date.
- Offer below the debt: if the offer doesn't cover the loan, you pay the difference before the sale.
- Insurance: some loans require comprehensive cover until the end. Only cancel the insurance after the sale.

## Frequently asked questions

**Can I sell the car before I finish paying for it?** Yes, but a loan with retention of title has to be paid off and the retention cancelled before the sale and payment.

**Do you pay the loan directly to the bank?** The loan has to be paid off with the lender before payment. We agree the sale documents with you before any payment.

**How do I know if my car has a retention of title?** Look at the registration certificate or ask for a certificate from the vehicle register.

**Can I sell a leased car?** Only after exercising the purchase option and the car being in your name.

**What if the car has a seizure?** The seizure has to be lifted before the sale; without that we don't buy.

**Do you pay in cash?** No. We pay only by bank transfer to an account in the seller's name.

## Read next

- [Sell your car](https://tugacarro.com/en/vender-carro/)
- [What is my car worth](https://tugacarro.com/en/quanto-vale-o-meu-carro/)
- [Documents to sell your car](https://tugacarro.com/en/documentos-para-vender-carro/)
- [Selling a damaged or broken-down car](https://tugacarro.com/en/vender-carro-acidentado-avariado/)
- [Private sale, trade-in or buyer](https://tugacarro.com/en/vender-carro-particular-retoma-ou-comprador/)
- [Sell your car in Lisbon](https://tugacarro.com/en/vender-carro-lisboa/)
- [Sell your car in Porto](https://tugacarro.com/en/vender-carro-porto/)
- [Sell your car in Leiria](https://tugacarro.com/en/vender-carro-leiria/)

## Tools

- ISV calculator with "outside the EU" mode: https://tugacarro.com/en/simulador-isv/
- TugaCarro bot on Telegram: https://t.me/TugaCarroBot