Car loan...help?

LeShark

Ok this is a bit of an odd question... any help appreciated.

Basically I bought a car on finance at the beginning of the year (8000 over 5 yrs). I've kinda seen the light and want to down size to a car worth about 2-3k instead. Would a dealer take my newer more expensive car, and let me have a cheaper one and pay me the difference? Or would I sell my expensive one privately and then buy the cheaper one?

Hope that makes sense!

LeShark

iolanthe07

You could always try approaching a dealer, but in my experience it is always better to sell privately, providing you don't accept a silly price. Dealers don't like having to shell out money in this sort of reverse part-exchange unless it is very much to their advantage.

nomoneytoday

Dealers will do a part ex both ways. However they will look to make money on the deal. A private sale is usually better if you can wait.

Also if there is outstanding finance on the car you may have to clear it 1st, or cover the negative equity..

LeShark

Ok thanks for the replies. Basically it won't hurt to ask!
Current car's worth about 8k
Want one for about 4k
Have about 7k left to pay off...they might do something. Just from my point of view I'd rather have 3-4k to pay off over 2-3 years than 7k over 5yrs.

They can only say no!

Debt_Free_Chick

You might need to involve the car finance company before you attempt to sell the car. It depends how the finance is structured. Typically, the car belongs to the lender until you have paid off all the loan, so the car is not technically yours to sell. And if you try to sell it or Part-Ex it, the standard vehicle check will show that you are not the owner.

So .... what kind of finance do you have on the car?

nomoneytoday

If the is worth £8000, a dealer will usually look to pay £6500-7000. You will need to get a settlement figure. If this is about the same you will be starting again with a £4000 car.

md_14uk

Strangley, my Sister-in-law had her light bulb moment this week and her first move is a plan to downsize from her Suzuki Grand Vitara (not much mpg in one of those!). Anyway she has a large amount of negative equity in the car as it is less than a year old and I came on here to look for advice.

Looks like the best way to minimise the cost is too sell the car privately.

Thanks.

PS It doesn't help in either of these situations but I thought I'd mention it anyway. I've done a little bit of research on this and if you have a typical HP agreement once you have paid 50% of the payments to the finance company you can legally hand the car back and have nothing more to pay.

This helps if say you bought a car for £5000, which is now worth £1500-2000 but because of the interest charges you owe around £2800!!!

wayne

hi first thing they,ll do is an HPI check and from there they will decide if its worth them carrying on.they will know straight off that you still have finance on the car.if they go ahead good luck.i have a toyota landcruiser and want to get rid of(its worth about 7500 to 8000 according to a mechanic friend) so i called to look at a vectra priced at 3995 asked the salesman what i,de get if i back traded and he said i would be looking at 4000 so i told him to go away.the moral being dont back trade try and sell it private.good luck anyway.

LeShark

I know they'll know it has finance on it, it should be a simple visit really. Will they do it yes/no! Might pop in tomorrow...I'll let you know how things go. Thanks for all the replies guys!

LeShark

Just to update you,

Popped in to the dealer today and turns out one of the parents of the kids I teach works there (might be a useful angle!). Thinks it should be doable but going back monday to really look through stuff. Plus he's got the car I want as a replacement too!


Anyway, it could all fall to bits on monday but at least it's not a straight 'No'

LeShark

Ok update time...

Basically it turns out that there is no HPI on the car and instead i was given a personal loan?? Random. Wasn't at all aware of that but there we go. They WILL take my car and it pays off the loan exactly.

Now to pick the next car...