Car Finance

joa1987

I recently swapped my car for a new model and took out car finance to pay for it. I already owned my previous car so had no outstanding finance on that. They valued my car at £5,000 and took £2,000 as deposit on the new car and gave me £3,000 in cash back (which I haven’t actually spent yet!).

I’ve had the car for a month now but I’m really not getting on with it, the seat is giving me crippling back pain which I’ve never experienced with a car before and I want to get rid of it for something different. When I took out the finance, the dealership told me that when the time came for me to swap the car, probably after a few years, I can just transfer the remaining finance over to the new car and the dealership would take it on. Do you think this would still apply given I’ve only had the car a very short time? Thank you for your advice

Cornucopia

It would be very unusual to transfer car finance from one vehicle to another, as such. The loans are generally secured on the specific vehicle.

Any dealer can work they way around the figures, though, and settle the existing finance, trade the vehicle and set up a new agreement. It's only a question of whether the figures suit you.

I would start by discussing your problems with the car with them.

Oakdene

It is possible to use any equity left in a vehicle, after the finance has been settled, as a deposit on a new vehicle. However as you are so early into your new finance agreement, you are more than likely going to be in negative equity.

My first port of call would be going to see the dealer & having a chat, explaining that you are in discomfort when driving the vehicle & see if there is anything they can do to help get you into a different car.

foxy-stoat

What car is it, is there a higher spec model with different and better supporting seats?

Maybe cheaper for you to buy upgraded seats if they are more supportive, put your seats in the attic and swop them back when you come to the end of the agreement.