Part Exchanging a car with outstanding finance?

chokolat2

Hi everyone
Looking for a bit of advice.

The other half currently has a Ford Fiesta 58 plate with 6K outstanding finance.
He now has a company car therefore does not use the Fiesta at all.

However we are looking to part exchange to an automatic (as I have automatic license) and perhaps 10/60 plate.

Could someone explain the process of part exchanging a car with outstanding finance because we have tried to understand their calculations but not getting it.

My other question is whether a bank loan is cheaper than through a company like blackhorse? What are everyone's experiences and opinions on this?

Thanks in advance

gardner1

chokolat2 wrote: »

Hi everyone
Looking for a bit of advice.

The other half currently has a Ford Fiesta 58 plate with 6K outstanding finance.
He now has a company car therefore does not use the Fiesta at all.

However we are looking to part exchange to an automatic (as I have automatic license) and perhaps 10/60 plate.

Could someone explain the process of part exchanging a car with outstanding finance because we have tried to understand their calculations but not getting it.

My other question is whether a bank loan is cheaper than through a company like blackhorse? What are everyone's experiences and opinions on this?

Thanks in advance

the outstanding balance might be more than the car is worth

chokolat2

gardner1 wrote: »

the outstanding balance might be more than the car is worth

I know that ....
But what does it in effect mean? Will we be payment more per month if we get the new car?
How do they work it out, say if for example the new car we want is selling at 8k?

GAZ237

A personal bank loan will be a lot cheaper than Blackhorse.

Depending on what sort of finance you took out on the Fiesta. The finance company may take it back if you have paid more than half.

What calculations are the dealer giving you?

gardner1

garage will take your car pay outstanding balance £6k tell you car is worth £5k the £1k will be added to £8k new car

total £9k to finance

chokolat2

GAZ237 wrote: »

A personal bank loan will be a lot cheaper than Blackhorse.

Depending on what sort of finance you took out on the Fiesta. The finance company may take it back if you have paid more than half.

What calculations are the dealer giving you?

We been to arnold Clarke today, had a look at 10 plate Fiesta price £6998.
Gave us £5400 for current car to part exchange
Eventually got the apr reduced to 8.8% and monthly payments of £162 for 60 months.
We are paying £140 now, so not 100% sure we getting a good deal or not

smashingyour...

chokolat2 wrote: »

We been to arnold Clarke today, had a look at 10 plate Fiesta price £6998.
Gave us £5400 for current car to part exchange
Eventually got the apr reduced to 8.8% and monthly payments of £162 for 60 months.
We are paying £140 now, so not 100% sure we getting a good deal or not

You bought a car for 7k and they gave you 5400 for a five year old fiesta. Now you owe them 9.7k.

Were you on that programme last night?

chokolat2

smashingyour... wrote: »

You bought a car for 7k and they gave you 5400 for a five year old fiesta. Now you owe them 9.7k.

Were you on that programme last night?

Who said I bought a car for 7k?
And by the way of course I know I'm going to owe them more, I am looking to get a newer car after all!!

smashingyour...

chokolat2 wrote: »

Who said I bought a car for 7k?
And by the way of course I know I'm going to owe them more, I am looking to get a newer car after all!!

Don't matter what you got knocked off, owning almost ten grand on a three year old fiesta is mad.

chokolat2

smashingyour... wrote: »

Don't matter what you got knocked off, owning almost ten grand on a three year old fiesta is mad.

So what's the way out, what do you suggest?

CKhalvashi

chokolat2 wrote: »

I know that ....
But what does it in effect mean? Will we be payment more per month if we get the new car?
How do they work it out, say if for example the new car we want is selling at 8k?

It means you'll have to find the difference, and as mentioned, a traditional bank loan may be better.

I always time things so the finance is paid before I send the car back (thus having a large deposit for a new one, avoiding the negative equity), but I know its often not possible to do this.

CK