Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

    • pinder325
    • By pinder325 17th Apr 18, 10:08 AM
    • 4Posts
    • 0Thanks
    Car loan help please
    • #1
    • 17th Apr 18, 10:08 AM
    Car loan help please 17th Apr 18 at 10:08 AM

    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!
Page 1
    • zx81
    • By zx81 17th Apr 18, 10:12 AM
    • 16,856 Posts
    • 17,875 Thanks
    • #2
    • 17th Apr 18, 10:12 AM
    • #2
    • 17th Apr 18, 10:12 AM
    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
    • By poppasmurf_bewdley 17th Apr 18, 11:20 AM
    • 5,191 Posts
    • 5,312 Thanks
    • #3
    • 17th Apr 18, 11:20 AM
    • #3
    • 17th Apr 18, 11:20 AM
    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.
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
    • Herzlos
    • By Herzlos 17th Apr 18, 1:55 PM
    • 7,243 Posts
    • 6,510 Thanks
    • #4
    • 17th Apr 18, 1:55 PM
    • #4
    • 17th Apr 18, 1:55 PM
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

196Posts Today

1,969Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin