loan / finance difference

drbesty

Is the car worth enough to a dealer to cover the £6300? Why dont you stick with the car, you bored of it already?

Tubbss

Hi.

The car may have a £6.3k settlement on it but it would be worth far less than this due to depreciation. The car may retail (for example) at £5k, a difference of -£1.3k. They would need to sell this car at a profit (it is a business after all) so on trade would be worth £4K.
Long and short of it, no dealer would be prepared to settle a car with "negative equity" unless there is a masive mark up on the new car they are selling you!. You are 6 months into a 36 months agreement, keep up your repayments for another year and then VT!.

bexyboo1312

what/ it isn't in negative equity....in fact it has £200 equity in it....!! think i must not be explaining my self correctly,.
BASICALLY all I want to know is if when they run application through for finance, does it look at your credit score or look at different things compared to when you apply for loan?

john_white

bexyboo1312 wrote: »

what/ it isn't in negative equity....in fact it has £200 equity in it....!! think i must not be explaining my self correctly,.
BASICALLY all I want to know is if when they run application through for finance, does it look at your credit score or look at different things compared to when you apply for loan?

So the dealer has offered you 6.7k for your car?

CHR15

You mean a garage sold you a car on finance and 6 Months later it is worth not only physically more than you paid for it, there is even enough profit to clear the outstanding finance???

Have you got the decimal points in the right place??

john_white

CHR15 wrote: »

You mean a garage sold you a car on finance and 6 Months later it is worth not only physically more than you paid for it, there is even enough profit to clear the outstanding finance???

Have you got the decimal points in the right place??

They may have only financed part of the purchase.

paulmcerlean

There is NO chance this car is worth more 6 months on.

In answer to your question though - applying for a new finance agreement through a dealer will result in a credit check as per the loan on which you were declined. It has a slightly higher chance of acceptance as the finance is secured but still very heavily on your credit history.

john_white

paulmcerlean wrote: »

There is NO chance this car is worth more 6 months on.

In answer to your question though - applying for a new finance agreement through a dealer will result in a credit check as per the loan on which you were declined. It has a slightly higher chance of acceptance as the finance is secured but still very heavily on your credit history.

If and I buy a car for £12000 and finance £6000 this does not mean the car is now only worth £6000!. The car will of course be worth less than I paid for it but the value is not set at the amount of finance I took out.

CHR15

john_white wrote: »

If and I buy a car for £12000 and finance £6000 this does not mean the car is now only worth £6000!. The car will of course be worth less than I paid for it but the value is not set at the amount of finance I took out.

Without the OP telling us the whole story of what was paid and what was financed, we can only guess, hence the assumptions...

bexyboo1312

i got my car on finance, under the scrappage deal so effectively had £2000 off the retail value, i had finance for just under £7k ~(or there abouts) - paperwork is not with me. the settlement is £6300 and the car is worth £6500 trade in, have had one of the 5 garages offer me under that - but that is it. so ok, effectively i have lost the £2000 scrappage deposit - but it wasn't my money and my car was worth nothing anyway, so i don't see that as losing money.