Changing car

Ali_J_2

Hi,

I purchased a new (second hand) car about a month ago. My circumstances have now changed and I need to get rid of the car and get a cheaper one.

I have finance on the car which is less than half the value of the car.

If I trade the car in, the dealer will pay off the outstanding finance and what's left will be a deposit for another car (right?).

Would it be possible for me to then use this deposit to buy a car which is worth less than the full value of my trade in?

Thanks in advance

Flyboy152

Ali_J wrote: »

Hi,

I purchased a new (second hand) car about a month ago. My circumstances have now changed and I need to get rid of the car and get a cheaper one.

I have finance on the car which is less than half the value of the car.

If I trade the car in, the dealer will pay off the outstanding finance and what's left will be a deposit for another car (right?).

Would it be possible for me to then use this deposit to buy a car which is worth less than the full value of my trade in?

Thanks in advance

What cars are they (the one you have now and the car you want to buy), what age and mileage, make, model and variant?

To be honest, the dealer will not give you anything close to what you paid for it and the finance settlement will be quit a bit. How much did you borrow and how much was the price of the car you have bought.

bigjl

As flyboy says you will lose a small fortune.

Dealer will give you a bit more than "trade" as he is doing a second deal, maybe, the finance company will want a chunk of the interest thay would have got.

It may make it cheaper in the long run to keep the car.

scheming_gypsy

Ali_J wrote: »

I have finance on the car which is less than half the value of the car.

If I trade the car in, the dealer will pay off the outstanding finance and what's left will be a deposit for another car (right?).

Would it be possible for me to then use this deposit to buy a car which is worth less than the full value of my trade in?

Thanks in advance

I'm guessing you traded a car in or paid a chunk of cash? which is why the finance is low?

From what you've said there i can't see there being a problem as you've sold a car to the garage, they've paid off the finance and you've £x left

Ali_J_2

Flyboy152 wrote: »

What cars are they (the one you have now and the car you want to buy), what age and mileage, make, model and variant?

I currently have an 09 plate Vauxhall Insignia 1.8 SE 4dr with 36,000 miles on it.

I am looking at something smaller such as a Peugeot 308 1.6 diesel or similar, no older than an 08 plate.

I have already received a settlement figure from the finance company and I am paying £1.14 more than the amount I borrowed which I was pleasantly surprised at! (So much so I had to phone them and confirm this).

Thanks again.

Flyboy152

Ali_J wrote: »

I currently have an 09 plate Vauxhall Insignia 1.8 SE 4dr with 36,000 miles on it.

At best worth £8,500 trade top book, bottom book is about £7,300. How much did you pay for it?

I am looking at something smaller such as a Peugeot 308 1.6 diesel or similar, no older than an 08 plate.

For an SE you're looking at about £6,750 retail.

So, you really won't be gaining much unless the insurance on both is significantly different.

I have already received a settlement figure from the finance company and I am paying £1.14 more than the amount I borrowed which I was pleasantly surprised at! (So much so I had to phone them and confirm this).

Thanks again.

That's not bad.

rob7475

I wouldn't bother with the 308. I had one last year for nearly a year from new and it was developing rattles after a few months and wasn't particularly comfortable to drive.

Ali_J_2

Thanks Flyboy.

I paid £9995 but did get £1k more on the car I traded in compared with other garages.

I'm averaging 28mpg in the Insignia and looking at 308 diesels, I the figures the average mpg is up to 74.3mpg plus road tax is only £30 per year so I am thinking that the loss I would make by trading the Insignia in is justified to an extent compared to the costs I would have if I kept the car for a significant time.

Ali_J_2

rob7475 wrote: »

I wouldn't bother with the 308. I had one last year for nearly a year from new and it was developing rattles after a few months and wasn't particularly comfortable to drive.

I'm not sure what to get. It's probably between and Astra, 307/308 or a Focus, the one condition being that it's a diesel.

Thanks for the advice

fivetide

Remember you'll pay a premium for a diesel and the fuel is a lot more as well. You need to be doing a fair amount of miles to offset that with a lot of modern eco type engines. A good petrol should be able to get 40mpg and in reality the 308 diesel is not going to get close to 75mpg.

Depends on the type of driving of course but i'd say 50 to 60 is more like it.

5t.

Flyboy152

Aah, I didn't see the diesel bit, in which case Ali, you're looking at another five hundred to seven fifty on top.

Personally, I can't see where you wil be saving much money.