Car loan help please

pinder325

Hello,

I want to buy a new car. But I currently have a car that I bought with a personal loan. I got my current car valued for a trade in and it worked out to be the same amount I still have outstanding on my loan. So the plan is to sell my current car, pay off the loan and then get a new loan for the new car.

But what would be the best way to do this? I will need to pay off the current loan before applying for the new loan. But to do that I need the money from the sale of my current car, which I don't think I would be able to do because the price I got for my car is a trade in price, not a cash price. I can't think of a way to be able to do this without selling my car for the lower cash price and then live without a car for a week or so while the new loan is approved.

Any advice would be great!

[Deleted User]

It depends on your circumstances.

Are you sure your income is too low/credit history too poor for a second loan?

Have you looked in dealer finance, where things could happen simultaneously?

poppasmurf_bewdley

If the value of your present car is more or less the same as what's left on the loan, then the obvious answer would be to trade it in and let the dealer pay off the loan when you buy a new car.

Only you can decide if this is the best answer for you after comparing what you are offered by the dealer compared with selling the car privately.

But remember, trying to sell a car which is still on finance can be a problem.

Herzlos

It sounds like a bank loan rather than being linked to the car, so selling it isn't a problem.

How are you financing the difference? You might be easier phoning your loan provider to see if they'll extend the loan to cover that, then you trade in and give the dealer the difference.
Or you can always find another loan / save up to cover the difference and leave the first loan alone.