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Car loan

Hi, 
I am thinking about changing my car and the finance on it finishes next June. Am I better waiting until then or would it not make much difference?

Comments

  • Brie
    Brie Posts: 14,298 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    hard to say what the difference might be.  interest rates are likely to change several times at least - likely up and down repeatedly.  also your personal circumstances might change - pay rise, job loss, need a new boiler or decide to fly to Borneo making money tight.  
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  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 24 October 2022 at 5:06PM
    What "finance" do you have on the current car?  And what finance are you planning for your next car?  All other things being equal, if you're talking about a straightforward personal loan then it makes little difference.  You can apply for a new loan for the new car, but on the understanding that when the lender does their affordability checks, they'll take into account the outstanding finance on your current car.  And of course, you'll be paying off 2 loans until such time as the first one is cleared.
    If your current car is on a PCP, lease, HP, whatever, then you'll basically need to clear that finance before you can sell it - or sell it to a dealer who'll clear the finance for you and give you the remainder (if any).
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