Changing car on Finance

cheeky-peach

Hi all,
Apologies if this has been asked before.
I have a car on Finance (not PCP) which I got January 2019.  Basically, its not practical now I have a baby and I was wondering how I can go about swapping it? I appreciate I will have to settle the balance but could I then get a cheaper car and put the outstanding amount on a new deal? 

Thanks 

Scrapit

What type of finance do you have?

ontheroad1970

Sounds like normal HP.  Rare for people to call a bank loan, finance...though not unheard of.

cheeky-peach

Yes sorry, HP  

facade

Ask your lender for a settlement figure, and compare that with what WBAC offer for the car.

When you go to buy a "new" car, with this one as a part exchange, the dealer will be pleased to settle the finance, and then add the difference between the settlement and his offer for the part-ex (the negative equity) onto the price of the "new" one.

Whether this will make the payments cheaper than they are now depends on what you buy and the length of the term.

It usually isn't a good idea to do this, as you are paying interest at a high rate on a loan, there is massive negative equity in the deal, and your options to get out of it, should you need to, are more difficult.