Changing car when 2 yrs left on HP deal?

megc_2

I have a Renault Clio with 2 years left to pay on the 5 year HP deal- car is now 6 years old (04 reg).

I want to change it to a newer car which will still be under warranty etc, so no MOT/ repair costs (doesn't have to brand new- maybe 1yr/ 18 months old). I don't have any spare cash lying about cash to splash out as deposit or to pay off finance owing on this car though- I'd need to start a new finance agreement for the new one.

What I'm wondering is, due to the HP left to Renault finance, is part exchanging my car for another Renault my only real option, or are there any other ways of doing it?

harveybobbles

Part Ex it for what ever you want at what ever garage. The finance will get settles and start again with a fresh one. You ideally need a settlement figure from RFS.

LandyAndy

If it is an HP deal and you have paid more than half the amount due under the finance agreement then you can simply hand the car back to the finance house with nothing more to pay. This is the thing to do if the car is worth less than the remaining finance.

Ask the finance company about 'voluntary termination'.

bigjl

If you have no additional deposit then I would say stay where you are till you have paid it off, unless there is a mechanical issue with your Clio.

Though it all comes down to how much you owe and how much you can get for your car on part-ex.

Make sure the dealer oesn't try to sell you an overpriced car and uses this to give you a better trade-in.

I have done what you are thinking about doing loads of times in the past and it always cost me a fortune, but hindsight is a wonderful thing.


Any dealer will do you a deal, as said above Renault Finance is almost certainly just a trading name for another company,my wife had a car through Seat Finance years ago and the loan was actually with Black Horse.