Applying for additional car finance

BlueCreek

I currently have finance on a car with around £5000 left over 3 years, I am looking to get a new car which will again be on finance.

My parents are happy to take my current car off me but do not have the £5000 it would cost to pay off the finance, I was wondering what would be the best way to go about doing this?

A few options I have thought about are; is it at all possible to change the name of the finance and allow for my parents to pay for it, or would it be cheaper for them to take out a £5000 loan from a bank?

Also by doing this will I then be accepted to take on another car loan after giving this one away?

It has also be suggested that my parents take on my new car while I carry on the payments for my current car and I give them the difference of the amount each month.

Any advice is greatly appreciated, thank you.

DCFC79

Why not buy or save up for 1 ?

BlueCreek

The car I am looking at is £17k, and I have thought about saving up but have found a great car that I could afford the monthly payments on.

bsms1147

BlueCreek wrote: »

The car I am looking at is £17k, and I have thought about saving up but have found a great car that I could afford the monthly payments on.

You cannot afford this car.

BlueCreek

I only came here to ask for advice, not to be told what I can and cannot afford, I have decided to contact the garage directly after speaking with my bank who I owe the current finance too.

Test drive is booked for thursday and also with the help of a part ex the payments are £240 a month, which is easily within my budget.

Cheers for your help guys.

Caz3121

but how long before you want to change it again and the car is (again) worth less than you still owe on it?

assuming new car £17k
current car £4k
outstanding loan £5k

is the new loan £18k..(to pay off the old loan) or are you going to run 2 loans £5k and £13k

BlueCreek

Caz3121 wrote: »

but how long before you want to change it again and the car is (again) worth less than you still owe on it?

assuming new car £17k
current car £4k
outstanding loan £5k

is the new loan £18k..(to pay off the old loan) or are you going to run 2 loans £5k and £13k

I have found a buyer for my current car with finance due on it, they are paying slightly more than the amount due. Meaning I can pay it off in full.

My new loan will then be £14k after deposit. I have agreed to PCP finance, which involves low payments and a big final payment which is equal to the value of the car in 4 years time. I can then give them back the car to pay off remaining debt and get another car.