Santander Car Loan - Quick Question

stqueen

I have a quick question relating to a 'motor finance agreement' with Santander.

I am buying a new car this weekend, using my existing one (which I bought in June 2008 with said Santander motor finance agreement) as a P/X. However, it has just occured to me - I have 16 more payments of £111 to pay on the agreement (although I am thinking about settling the balance in full at the end of next week, when I receive my bonus).

Will the fact that the MFA is not yet paid in full prevent the motor dealer taking my car as a P/X? Will they not do this until the finance is settled?

KingElvis

It will show up as unsettled finance.

NeverEnough

Reputable dealers will give you a part-ex figure for your car and will settle the finance on it, using any balance to reduce what you would owe on the new purchase. Yu need to disclose that there is money owing on the car, as you don't have the right to effectively sell a car which doesn't yet belong to you - financing banks when contacted for a settlement figure, will usually allow a period for the loan / HP to be settled, thereby allowing the dealer to take your car in part exchange. The dealer then settles the finance and the ownership of the car passes to them. With main dealers and big independents this is generally never a problem, but you could run into issues if "Honest Fred's Car Lot" down the road takes your car in in part exchange with an arrangement to pay off the finance, then fails to do so - the financing bank would then come after you for the money.

stqueen

Thanks for the responses - you have confirmed what I suspected.

My question is, as I fully intend to settle the balance in full next Friday (I can't do it before then as I am paid my bonus on this date), will the dealer accept the car knowing the finance will be settled in a weeks time?

Will they run an HPI check on the vehicle before accepting it as a P/X (and therefore seeing finance is owing)? As I say, this will be paid off a week tomorrow.

It is not a main dealer - it is a privately owned garage.

Mallotum_X

Why not put a deposit down on the car you are buying and do the deal next Friday?

birkee

The dealer will make you an offer for your old car, and accept the outstanding debt you have left, but he will deduct the outstanding debt, from the payment towards your new car.
i.e. £6000 for your old car, minus £1776 (6 x £1111) to pay off on your old car. He will then probably be able to get the £1776 left owing reduced, for early settlement.) So, £6k for your old car, minus £1776, means £5334 towards your new car.

Doubt you will get ANY dealer to do a deal on a 'promise to pay', so do what mallotum suggests. Hold the deal off until after Friday.

Don't forget, if YOU settle the £1776 balance owing, to ask for an early settlement figure, which may be less.
Although I've heard some finance companies don't do reductions for early settlement.
(Friday!! That's tomorrow !! Bit late for talking early settlement with your finance company isn't it? Why the rush?)

stqueen

Mallotum_X wrote: »

Why not put a deposit down on the car you are buying and do the deal next Friday?

This seems the most sensible thing to do The only issue is I'm travelling quite far to the garage (where my parents live, 3 hours away), and I don't want to do the journey twice! So I wouldn't want to go this weekend to place the deposit, then back the following weekend to pick it up! But I may have to :mad:

I'm thinking the best thing all round is to settle my finance agreement as planned (next Friday) then buy car the following day (so next weekend).

Silly me - I was hoping the dealer wouldn't ask nor find out there was outstanding finance, and it would have been paid off a week later. But clearly that isnt going to work!

birkee

stqueen wrote: »

This seems the most sensible thing to do The only issue is I'm travelling quite far to the garage (where my parents live, 3 hours away), and I don't want to do the journey twice! So I wouldn't want to go this weekend to place the deposit, then back the following weekend to pick it up! But I may have to :mad:

I'm thinking the best thing all round is to settle my finance agreement as planned (next Friday) then buy car the following day (so next weekend).

Silly me - I was hoping the dealer wouldn't ask nor find out there was outstanding finance, and it would have been paid off a week later. But clearly that isnt going to work!

Sensible: The finance company could sieze the car from the dealer, if there was outstanding debt.

dresdendave

birkee wrote: »

i.e. £6000 for your old car, minus £1776 (6 x £1111) to pay off on your old car. He will then probably be able to get the £1776 left owing reduced, for early settlement.) So, £6k for your old car, minus £1776, means £5334 towards your new car.

£6000 less £1776 is £4224 isn't it?

birkee

dresdendave wrote: »

£6000 less £1776 is £4224 isn't it?

Oops! I'm getting older quicker than I thought!

PNPSUKNET

call them and make a card payment over the phone