Car finance

sleepycat_2

Hi, i'm not sure if this is the place to ask about this ( I'm new to this!!), i need some help and advice on car finance! My car is on finance but i want to get rid of it but i think the car is worth less than the settlement. Is it easy to get new finance on a new car that also covers the rest of the old finance??? Who do i speak to?? x

Nile

Hello sleepycat

Welcome to the MSE site.:wave:

I'll move your thread to the 'Motoring & Public Transport' board.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

Regards

Nile

anewman

Why not just buy a car outright. As you rightly point out cars depreciate like anything. £2000 or even £1000 can buy you more than you might imagine.

harveybobbles

sleepycat wrote: »

Hi, i'm not sure if this is the place to ask about this ( I'm new to this!!), i need some help and advice on car finance! My car is on finance but i want to get rid of it but i think the car is worth less than the settlement. Is it easy to get new finance on a new car that also covers the rest of the old finance??? Who do i speak to?? x

Yes you can get finance to cover the difference between your car's value and what you owe, though by doing this you will be slowly digging your self into a deeper and deeper hole know as negative equity...

You need to get your car valued by several dealers to work out roughly what it's worth, then get a settlement figure. If it's too big of a cap, you finance company may just say no to doing a new deal. Though in the present state of this country they'd be greatful for the business!

You could always stick with your car and pay it off over the coming years, or perhaps get a bank loan to pay it off in full, then sell it, pay a chunk off the loan and buy a smaller/cheaper car. Money saving...

McKneff

like the man says, deeper and deeper, in 12 months time you will be in as much as some of the other posters who are desperate for help cos theyre in it up to their eyeballs. keep you car for now till its paid for and then
buy another one and start afresh.

taff007

If your car finance was arranged through a dealer (rather than an unsecured bank loan) then check the wording on your finance documents. If I remember correctly, on certain types of car loan there is the option of simply returning the car to the finance company when you have paid off at least half of the credit price. The credit agreement will then end and you will no longer owe any more for this car so can start afresh. There may well be requirements that the car is returned in a certain condition etc but this can be discussed with the finance company.

I wouldn't suggest doing this as a matter of course as I think it is an expensive way of acquiring a car, but if you are desperate to change it may offer a solution.