Help & Advice

How do i transfer a car loan from one car to another?

Hello, I already have existing finance on my car & I want a new car. I have my finance through BMW at the moment but i don't want a BMW any more. I'd like a cheaper car. How do I go about it? Can i transfer the finance to another company?

Julie-Anne


Answer

Hi Julie-Anne, sincere apologies for the delayed response.

You can't transfer a finance agreement from one car to another unfortunately but you can indeed swap the current BMW for a cheaper vehicle.

Do you know what your current settlement figure is for the BMW and what the car is worth approximately (trade value)? Hopefully you're not in negative equity (where the amount you owe is more than the car is worth).

Once you know the answer to the above question we can then possibly help. Very simply the dealership where you part exchange your current BMW will be responsible for settling the existing finance agreement. If you actually have equity in the car this can be used as a deposit on a new car. If approved you can then take a new finance agreement out on the new cheaper car you wish to purchase. I hope all that makes sense.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

Answer correct as of September 2016

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More related questions

I took out finance with you 6 months ago, it was for a car for both my partner and myself. We have now split and he would like to take the car and therefore take over the finance. Can we do this? Laura

Answer

Hi Laura, you'd have to call the finance company. What finance company lent you the funds in the first place and whose name is the finance in? Is it in joint names or just your name? Regards, Rachel

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Hi, i have an existing finance agreement for 5 years and it's my 1st year only. Another problem is that there's a damage in the car bumper due to an accident (I've hit an animal on the road).

I would like to downgrade my car because my circumstances have change and i could no longer afford my existing monthly payment. Is it possible to transfer my finance to another company or terminate the contract? What is the best option? Help please!

Answer

Hi Francis, thank you for your question.

The best option would be to part exchange your current car for a cheaper one at a local dealership. Do you know what your car is worth (trade vaue) and what the settlement figure is?

The dealership will be responsible for settling your current agreement and we could possibly provide a new finance agreement on the new car if you'd like us to provide a quote.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Rachel Wilson, Underwriting Manager

Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender