How to Sell Machinery on Finance – The Ultimate Guide

Many plant machines are purchased on hire purchase (HP), lease, or conditional sale agreements. If you want to sell a machine before the finance is paid off, there are important steps to follow. This guide explains everything.

Can You Sell Machinery on Finance?

Under a hire purchase or conditional sale agreement, the finance company legally owns the machine until the final payment is made. This means you cannot legally sell it without first settling the finance — or with the finance company's explicit consent.

How to Settle the Finance

1. Contact your finance provider and request an early settlement figure
2. The settlement figure is typically the remaining balance plus any early repayment charge (often 1–2 months' interest)
3. Pay the settlement amount — this can often be done from the sale proceeds
4. Obtain a settlement letter confirming the finance is cleared
5. Transfer ownership to the buyer

What If the Finance Exceeds the Machine's Value?

If the outstanding finance is more than the machine is currently worth (negative equity), you'll need to pay the difference yourself. In this case, it may make more financial sense to continue making payments until positive equity is restored.

Selling to Plant Machinery Trading with Finance

We are happy to provide a valuation on financed machines. If you decide to proceed, we can work with you to time the sale so that settlement coincides with our payment — meaning the whole process can complete on the same day.

Get a Free Valuation