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Can I sell my accident-damaged car if it’s still financed? Your top questions answered
Accidents happen, and when they do, they can leave you with more than just a dented car. You may feel stuck if your vehicle is still under finance and has been totalled in an accident. You’re paying off a car that might not be drivable, repairable, or even worth fixing. So what now?
At Sell Your Damaged Car, we’re here to help you navigate the tricky road of selling a financed, accident-damaged car. This blog answers South African car owners' most frequently asked questions when they find themselves in this exact situation.
Can I sell a financed car that’s been in an accident?
Yes! You can sell a financed car, even if it's been written off or badly damaged.
But, you cannot legally sell a financed vehicle without settling the outstanding loan. In other words, the bank (or financial institution) is still the car's legal owner until the loan is fully repaid.
Your options include:
- Settling the loan in full yourself
- Selling the car to Sell Your Damaged Car, who can help you liaise with the bank and reach a settlement figure.
- Trading in the damaged car and using the payout to settle part or all of the outstanding finance.
What are my options if the insurance didn’t pay out the full amount?
Often, insurance only pays a portion of the vehicle’s value, or you may still owe money on the loan after the payout. This is known as negative equity.
Option 1: Communicate with the bank yourself and settle the remainder of the money owed over the next few months while simultaneously footing the bill for the repair and roadworthiness of your damaged car.
Option 2: An easier option is to sell your damaged car to SYDC. We’ll liaise with your bank, make you an offer, and, if you accept, help you coordinate the payoff with your bank.
Will you buy my financed car even if it’s not fully paid off?
Yes, we will! At Sell Your Damaged Car, we buy accident-damaged cars in any condition and with any outstanding debt still owed to the bank.
We’ll request a settlement letter from your bank and factor that amount into the offer. We can either pay the bank directly or guide you through settling, so the car can be legally transferred.
How do I get a settlement letter from the bank?
It’s easy. Either contact your bank or credit provider and request a vehicle settlement letter, or arrange to sell a damaged car to us, and we’ll communicate with the bank on your behalf.
The settlement document outlines:
- The total amount still owing
- Interest payable
- Banking details for final payment
We’ll use this to calculate how to proceed with the sale.
What documents do I need to sell a financed, damaged car?
To make the process smooth, keep these documents ready:
- Your ID
- Vehicle registration papers (or a copy, if the bank holds the original)
- A settlement letter from your bank
- Proof of address
- Accident report or insurance claim reference (if applicable)
If you can’t find the papers, don’t stress. We’ll guide you through the process if you’re unsure about anything.
Can I sell my car if it’s a total loss or a write-off?
At Sell Your Damaged Car, we believe every car has value, even if it's non-running or severely accident-damaged.
Even if your car is classified as a write-off, you’re still responsible for paying the bank what’s owed. We’ll work with you to make an offer on the vehicle's salvage value and help settle your finances.
Pro tip: Don’t abandon the vehicle or leave it unrepaired without speaking to the bank. You're still liable for payments.
What if the repair costs are too high?
Repair costs often exceed the vehicle’s value, especially when it's still under finance. If you can’t afford the repairs or it doesn’t make financial sense, the decision to sell your accident-damaged car may be your best move.
We buy damaged cars in any condition and can help reduce your financial burden. Plus, we liaise with all major banks to negotiate a fair price.
How do I sell my financed, accident-damaged car?
Follow these simple steps to maximise your payout and simplify your selling process:
- Request a Free Quote From SYDC – Submit your personal details and vehicle details through our online form
- Send the Settlement Letter – We’ll help you request this from your bank if needed
- Get an Offer – We provide a fair market valuation
- Settle & Sell – We help you close off the bank account and transfer ownership
- Get Paid — Once the sale is finalised, we will send the same-day EFTS fast. Depending on the outstanding amount, these will either go directly to the bank or to you.
Sell a damaged car with confidence
Whether you're in Cape Town, Durban, Johannesburg, or a small town in between, we offer nationwide free towing and support.
We know dealing with banks, insurance, and accident stress is tough, so we keep things simple, transparent, and hassle-free.
Sell your financed, accident-damaged car today.
Don’t get stuck paying off a car that’s no longer roadworthy or drivable.
If your vehicle is financed and wrecked in an accident, let us help you sell it quickly and legally.
We’ll handle the paperwork and ensure you get paid what you deserve.