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Car Finance Juggling.
gittarmann
Posts: 2 Newbie
in Loans
Greetings All!
Not so much a problem as hypothetical question
I currently have a car on PCP which has it's balloon payment due in March. The GFV of the car is circa £7100.
The dealer has valued the car at circa £8000, however I have seen examples of it going for closer to £11,000 privately (Autotrader etc).
Now I quite fancy a new (read: different) car, and I have saved a couple of grand up for a deposit of some variety; however I don't have the best credit rating and I'm worried that If I attempt to finance a used vehicle I will have my app declined.
The dealer has assured me that upon completing my initial PCP and "handing the car back" the Marque's own finance company would probably have no problems in re-financing the balloon payment on HP with no deposit so I can "keep the car" having built up a good rep over the past 3 years on PCP. However I'm not convinced a different company would be so understanding.
The interesting bit follows:
Is there a way to refinance my current car, then sell it privately and use the funds to purchase a different second-hand vehicle; all the while continuing to pay off the finance. I am not looking to deceive the company! If I could let them know that my vehicle has changed and change the "collateral" as it were to the new vehicle then all the better!
It would just be nice to be able to exploit the full value of my current vehicle and not lose £3000 to the dealer.
I eagerly await your replies or even your other solutions!
GM
Not so much a problem as hypothetical question
I currently have a car on PCP which has it's balloon payment due in March. The GFV of the car is circa £7100.
The dealer has valued the car at circa £8000, however I have seen examples of it going for closer to £11,000 privately (Autotrader etc).
Now I quite fancy a new (read: different) car, and I have saved a couple of grand up for a deposit of some variety; however I don't have the best credit rating and I'm worried that If I attempt to finance a used vehicle I will have my app declined.
The dealer has assured me that upon completing my initial PCP and "handing the car back" the Marque's own finance company would probably have no problems in re-financing the balloon payment on HP with no deposit so I can "keep the car" having built up a good rep over the past 3 years on PCP. However I'm not convinced a different company would be so understanding.
The interesting bit follows:
Is there a way to refinance my current car, then sell it privately and use the funds to purchase a different second-hand vehicle; all the while continuing to pay off the finance. I am not looking to deceive the company! If I could let them know that my vehicle has changed and change the "collateral" as it were to the new vehicle then all the better!
It would just be nice to be able to exploit the full value of my current vehicle and not lose £3000 to the dealer.
I eagerly await your replies or even your other solutions!
GM
0
Comments
-
Ask your current finance company for a settlement figure
Advertise the car for sale
When a buyer comes and agrees to buy the car for a figure you are happy with tell them about the finance
You and the buyer ring the finance company and the buyer pays the finance company the settlement figure so they know the car is finance clear.
The buyer then pays you the additional amount (difference between the finance and your agreed sale price)
Sign over the V5 and the usual stuff
Buyer drives off with the car, finance is paid and you have the cash in your hand to drive a harder bargain with the dealer.
The car will be linked to the finance agreement so you will not be able to split them. Any buyer should perform a HPi check and if finance comes up linked to the car and you have not mentioned it first they will believe you to be acting fraudulently and will run a mile.
BenI beep for Robins - Beep Beep
& Choo Choo for trains!!0 -
You want to continue paying the finance on a car you've sold?
Why don't you get a personal loan, clear the PCP, job done0
This discussion has been closed.
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