Refinancing car Finance?

Devster24

Hey guys,
I am new here so firstly apologies if this isn't quite either the right place for this question or if this has been covered already before.

I bought a car 20 months ago and financed the car for 5 years with quite a high interest rate. At the time my previous car was not quite worth what I owed on its finance and unfortunately it's the same story all over again.

So, skipping to the end, can I "REFINANCE" my car finance to a cheeper interest rate? Is it not that simple, or do I just take out another 'better' loan and pay off my current finance?

Are there such options or is this just a ridiculous 2am pondering that should be dismissed?

Any responses even to ridicule me would be welcome.

DEV...

Apples2

Have a look at your terms to see how you can overpay / settle.
The path of last resistance is most likely to get a personal loan for the amount outstanding and shift the debt away from the car.

Assuming it is HP, you could simply return the car and walk away, so long as you have reached the 50% point (the terms will have this info)

Ridicule - you knew how bad financing was last time. You knew that "New Car" feeling doesn't last anywhere near the time of the finance.......... But you went head first into another finance deal anyway?

If you go down the personal loan route, keep this car until the loan has been repaid, once the loan has been repaid start saving the same amount each month.

Once you have a savings pot, buy a car, with cash and keep saving. This is the path to debt freedom

John1993_2

Devster24 wrote: »

I bought a car 20 months ago and financed the car for 5 years with quite a high interest rate. At the time my previous car was not quite worth what I owed on its finance and unfortunately it's the same story all over again.

You write "unfortunately", as though there is much of an element of chance in how much your car is worth. Unless you've badly mis-treated it, or had an accident, then it is probably worth exactly what you exppected that it would be.

Cars, especially mainstream ones, depreciate along pretty well defined lines. It sounds as though you maybe need to look into this before you go and buy your next one, so that you don't make the same mistake again.

It's probably better if you save up, and buy a car for which you can pay cash. That way you won't get stuck with a loan worth more than the car again.

DCFC79

Post #4 is spam.

Apples2

DCFC79 wrote: »

Post #4 is spam.

When that gets deleted you will be post 4

gb12345

harrypolle wrote: »

Hi DEV,:beer:

[FONT=&quot]Nice to meet you. I know a website instantpinkSPAMs.com which guarantee you the best service and one of the most competitive rates in the industry, as well as 100% confidentiality. Just call 877-XXX-XXXX and talk to our loan officer for assistance. Hope this will be very useful for you.[/FONT]

[FONT=&quot]Thanks,[/FONT]
[FONT=&quot]Harry[/FONT]

You forgot to mention the upfront fee that he will need to send by Western Union to secure the loan.

John1993_2

As the site says "
Instant Pink Slip Loans will get you a lone with the most competitive interest
rates in the industry. "

DCFC79

Apples2 wrote: »

When that gets deleted you will be post 4

Ah ha well done Apples, you got me lol.

Yes just noticed my reply was #4.

Devster24

Well guys, thank you for your responses.

Hey John:
Unfortunately several unforeseen necessary work trips to Aberdeen clocked up a few too many miles, the Mrs started to drive (so Yes, slightly Mis-treated) and not enough people want to buy a 17mpg 2.8Turbo petrol, gutted. You are correct though I should have seen it coming...

Thanks Apples, appreciate it... This car isn't overly the problem it's the lurking £1500 'negative equity' (so to speak) added to this finance from the first car. It's all rather petty as its only a couple of grand in total but I'd rather have the difference in my pocket, wouldn't you...?

John1993_2

Devster24 wrote: »

not enough people want to buy a 17mpg 2.8Turbo petrol, gutted. You are correct though I should have seen it coming...

Which 2.8 liter turbo returns such bad mileage. Even my RS4 returns better than that.