Buying car with existing finance

Inquisitivekermit

Hi all,

I'm currently half way through paying off a car on hire purchase but starting to look at slightly bigger cars due to an upcoming change in circumstance. 

What options do I have with finance?  I think I read somewhere that a car showroom may take on the remaining HP finance in order to get your custom. Anyone have experience with this?

Thanks,
IK

Dmptogo

Car finance has to paid off first before you change car,part exchange price may cover it and you then start a new agreement on your new car

CliveOfIndia

Inquisitivekermit said:

I think I read somewhere that a car showroom may take on the remaining HP finance in order to get your custom.

They won't "take on" the finance as such, but they'll often pay it off for you.  For instance, if your car is worth £10,000 to them, and that's what they would be prepared to give you for it, but there's £5,000 finance owing on it, then they'll give you £5000 for the car and clear the finance on your behalf.  So you don't get "something for nothing", but it just makes it more convenient for you.

Herzlos

You can sell/trade-in a car at any time, but need to clear the finance first. Dealers will usually offer to clear the finance for you by taking the balance off the trade-in. If there's a surplus you'll get equity towards the new finance deal, if the balance is more than the car then you may be add the shortfall into the new finance package.