A loan on the car can feel like a reason the whole move is off. You are relocating, or you have found the car you want, and there is still money owed to a lender. In most cases it simply adds one more document to the pile: proof that whoever has a claim on the car agrees to it leaving.
This guide covers what that looks like for an American car with a lien, what to think about with UK finance, and what we need from you. It is general information, so check the detail with your own lender.
Why finance matters for shipping
When there is finance on a car, you are usually not its only owner on paper. A lender may hold a lien, or under some agreements may be the legal owner until the last payment. Moving the car to another country affects their security, so they get a say.
The authorities care too. Export controls exist partly to stop cars leaving that are not the exporter's to take. Proof that the lender agrees, or that the loan is settled, is how you show the car is yours to ship.
Two ways to do it
There are really only two routes. You pay the finance off before the car ships, or you ship it with the lender's written permission. Which suits you depends on your lender and how much is left to pay.
| Feature | Pay it off first | Ship with permission |
|---|---|---|
| What you need | Proof the loan is settled, and a title or record with the lien removed | A written letter from the lender agreeing to export |
| Finance after shipping | None | Carries on as agreed with the lender |
| Main delay | Waiting for the lender to release the lien | Waiting for the lender to issue the letter |
| Simplest for | Smaller balances you can clear | Larger balances, where the lender agrees |
Cars in the USA with a lien
In the US, finance usually shows as a lien recorded on the car's title. US Customs and Border Protection checks for this when a car is exported. If there is a recorded lien, or the car is leased, CBP asks for the title as normal plus a letter from the lienholder or lessor.
That letter has to be on the lender's letterhead and include:
- A full description of the car, including the VIN
- The owner's or lienholder's name
- Phone numbers where they can be reached
- An original signature and the date signed
- A clear statement that the car may be exported
A letter that misses one of these is a letter that gets sent back. Show the list to your lender when you ask for it.
Paying off a US loan first
If you settle the loan, the lender releases the lien. How that is recorded differs from state to state and lender to lender, so ask yours what you will receive and how long it takes. What matters to us is that the title we present to CBP is clear, or comes with proof the lien has been released.
Leave time for it
CBP needs the documents at least 72 hours before a car leaves by sea or air. If you are waiting on a lender, that letter or release has to be in hand before then, or the car misses its ship. Ask the lender the day you decide to ship, not the week before collection. Our guide to the US export rules covers the rest of the CBP side.
Buying a car that still has finance on it
If you are buying a car abroad and the seller still owes money on it, the seller's finance has to be dealt with before the car can leave. In the US, that normally means the seller's loan is paid off from the sale and the lien released, so the title can pass to you clear.
Do not pay for a car until you know how the seller's finance is being settled and when you will get the title. Our guide to buying a car abroad safely covers the other checks worth making before money changes hands.
The invoice still matters. Whatever the finance arrangement, UK customs works out the tax on the price of the car and the cost of getting it here. We need the purchase invoice or bill of sale, or a recent valuation if the invoice is more than 3 months old.
UK finance
The same idea applies to a car on UK finance. Citizens Advice explains that with hire purchase, the finance company owns the car until you have made the final payment. Other agreements, such as personal contract purchase or a personal loan, work differently, so check which one you have. Until the lender is paid or agrees, the car may not be entirely yours to move abroad.
This mostly comes up when a car bought on UK finance went abroad with its owner and is now coming back. If that is you, read your agreement and talk to the lender before the car ships home. A letter from them, or proof the agreement has been settled, keeps things simple.
A returning UK car can often come back without import tax, using its UK purchase invoice and the old V5C. Our guide to bringing a UK car back home explains how that works.
Other countries
Every country records car finance its own way, and the export rules differ too. The principle is the same everywhere: the person or company with a claim on the car agrees to it leaving, or the claim is cleared first.
We handle export paperwork in the country of origin through agents we have worked with for years. Tell us about the finance when you ask for a quote, and we will tell you what that country needs. Each country page lists the standard documents for that route.
What we need from you
With finance on the car
0 of 6 done
Send copies with your quote request and we will check them before anything is booked. The full list for every situation is in the paperwork you need to ship a car.
Questions people ask
Can I ship a car to the UK if I still owe money on it?
Usually, yes, as long as the lender agrees in writing or the finance is paid off first. The documents that prove it depend on the country the car is leaving.
What does US customs need for a car with a lien?
CBP asks for the title plus a letter from the lienholder on their letterhead, with the VIN, their name and phone numbers, an original signature and date, and a statement that the car may be exported.
Who owns a car on hire purchase in the UK?
Citizens Advice explains that with hire purchase, the finance company owns the car until the final payment is made. Check your own agreement and talk to the lender before moving the car.
Does finance change the import tax?
The tax is worked out on the price of the car and the cost of getting it here, so we need the purchase invoice or bill of sale, or a recent valuation if the invoice is more than 3 months old.
How long does a lienholder letter take?
It depends on the lender. Ask as soon as you decide to ship, because CBP needs the documents at least 72 hours before the car leaves.
Got finance on the car? Mention it on the quote form and we will tell you exactly what to ask your lender for.
