How to Finance a Car for Export from the UK

Why This Guide Matters

Financing a car is one thing. Financing a car you want to send off on a global adventure—that’s another kettle of fish entirely. Picture this: you’ve found the perfect set of wheels in the UK, but you want it sunning itself in Marbella, roaring down the Autobahn, or dodging potholes in Nairobi. The catch? Not all lenders are thrilled about their precious investment disappearing over the horizon. That’s where this guide comes in. We’ll break down the process, separate the unicorns from the donkeys, and make sure you don’t end up with an expensive lawn ornament stuck at the docks. If you’re even thinking about exporting a UK car with finance, read on—your sanity (and wallet) will thank you.

The Basics Explained

Let’s start with the nuts and bolts. When you buy a car in the UK using finance, the lender (not you) usually owns the car until you’ve paid it off. It’s like borrowing your mate’s barbecue: you can use it, but try selling it to your neighbour and you’ll have a problem. Exporting a financed car means you’re asking the lender to let their asset leave Blighty. Unsurprisingly, they’re not always keen.

Here’s how the main finance types stack up:

• Personal Contract Purchase (PCP): You don’t own the car until you pay the balloon payment. Exporting? Good luck convincing the lender.
• Hire Purchase (HP): Same deal. Ownership after final payment only. Until then, it’s theirs.
• Personal Loan: You own the car outright from day one. Export as you please—just pay your loan on time, or risk an angry banker instead of a repo man.

Financiers are fussy for a reason: if you skip the country (and your repayments), chasing you across borders is about as fun as root canal done by correspondence course.

How It Affects You

Imagine you’ve found a gleaming Range Rover in Birmingham. You want it in Dubai, but the finance company’s terms read like War and Peace. Here’s what you need to know, in practical terms:
• You can’t legally export a car under PCP or HP until you own it. If you do, you’re breaking your contract (not to mention the law). Lenders register their interest with the DVLA, so customs will spot any funny business.
• Some lenders may grant permission, but expect a grilling. They’ll want a good reason, proof you’ll keep paying, and probably some paperwork that would make MI5 proud.
• If you have a personal loan, you’re in the clear—on paper. But remember insurance, export paperwork, and local laws in your destination.
• Early settlement is often the answer. Pay off the finance, get the V5C in your name, and the world’s your oyster. Just check for early repayment charges.

Bottom line? Don’t try to sneak a financed car past the authorities. You’ll get caught, and the only thing you’ll export is your dignity.

Our Approach

At Kandoo, we’re not just here to fill out forms and nod politely. We actually like solving tricky problems (just ask our office Sudoku champion). Here’s how we tackle car finance for export, step by step:

1. We ask the right questions. Are you buying for yourself abroad? Shipping to a relative? Planning to drive to France and never come back? The details matter. 2. We match you with the right finance. PCP and HP are usually out if you want to export quickly. We look at personal loans or specialist export finance—yes, it exists, but only for those who can jump through hoops. 3. We talk to lenders—so you don’t have to. If you’re set on using standard finance, we’ll plead your case, explain your plans, and see if there’s any wiggle room. Sometimes they’ll say yes (if you’ve got a stellar credit record and a persuasive story). Often, it’s a firm no. 4. We keep it legal. No dodgy backdoor deals or paperwork that wouldn’t fool a traffic warden. We’ll help you get the V5C (logbook) in your name and make sure the car’s finance-free before it leaves the UK. 5. We advise on the extras. Export insurance, shipping companies, customs declarations—we’ve been there, got the T-shirt (and the invoice).

Real talk: If your heart’s set on exporting, we’ll help you pay off the finance or find a lender who’ll play ball. If not, we’ll tell you straight.

Before You Decide

Take a deep breath. Exporting a car is more than just loading it onto a boat and waving it goodbye. Here’s what you need to mull over:
• Check your finance agreement. Does it flat-out ban export? Most do.
• Calculate settlement costs. How much to pay off existing finance? Early repayment fees?
• Know the rules in your destination country. Import taxes, emissions rules, right-hand drive bans (looking at you, Europe).
• Get your paperwork in order. V5C, export certificate, proof of ownership—all must be pristine.
• Factor in hidden costs. Shipping, insurance, customs, local registration. It adds up quicker than you can say “unexpected bill”.

A little planning now saves you a world of pain later, and possibly a starring role in a cautionary tale.

What’s Real, What’s Hype

Let’s dispel a few myths:
• “You can just drive it out and nobody will know.” Wrong. DVLA, customs, and your lender all have systems to catch this.
• “Personal loans are always accepted for export.” Usually, yes—but not if you’re up to your eyeballs in debt.
• “Specialist export finance is easy to get.” It isn’t. It’s niche, and rates can be spicy.
• “Exporting is always profitable.” Sometimes. But shipping, taxes, and red tape can eat your margins alive.

If it sounds too easy, it probably isn’t legal—or remotely sensible.

Pros & Cons

Here’s a quick-fire breakdown:

Pros	Cons
Access to UK car bargains	Most finance blocks export
Potentially save money	Early settlement fees can be steep
Flexible with personal loan	Lots of paperwork and red tape
Can suit expats/relocators	Insurance and shipping costs

Weigh it up: is the juice worth the squeeze?

Other Options to Consider

Not convinced? Here are a few alternatives:
• Buy outright with cash. Simple, clean, no lender approval needed. If you’ve got the funds, this is the fast lane.
• Use a personal loan, not secured on the car. Less hassle, more freedom. Just keep up with the payments.
• Find a specialist exporter. Some UK dealers specialise in export sales, with finance options tailored for overseas buyers. Rates may vary, but they know the drill.
• Lease abroad instead. If you’re relocating, sometimes it’s cheaper and simpler to lease or buy locally in your new country.
• Ask the dealer. Some big UK dealers have export departments with their own finance plans (usually for bulk buyers).

Each option has its quirks—think about what suits your situation best.

FAQs

Can I export a car on PCP or HP finance? Not legally. You need to settle the finance first or get written permission—which is rare.

How do I settle my car finance early? Contact your lender for a settlement figure. Pay it off, get the V5C in your name, and you’re good to go.

What paperwork do I need to export a car from the UK? V5C (logbook), export declaration, and proof of purchase. Check the destination country’s requirements too.

Will my UK insurance cover the car during export? Unlikely. You’ll need specialist export or transit insurance for the journey.

Is it cheaper to export a UK car? Depends on the destination, currency rates, taxes, and shipping. Sometimes yes, sometimes you’ll wish you hadn’t bothered.

Can I finance a car specifically for export? Some specialist lenders offer export finance, but it’s a niche market. Expect a pile of paperwork and higher interest rates.

What happens if I export without permission? Your lender will come after you—and you could face legal action. Don’t risk it.

Next Steps / Call to Action

Thinking of exporting a car you’ve financed in the UK? Don’t just roll the dice—get expert help. At Kandoo, we know the rules, the loopholes, and the best lenders for your needs. Drop us a line before you book that shipping container. We’ll save you from paperwork-induced breakdowns—and possibly a run-in with Her Majesty’s finest. Get in touch for a chat (and no, we won’t try to sell you a time-share in Marbella).