Help & Advice

Can i settle my current car finance agreement early?

I have finance on my car now that was over a 4 yr period. I have only paid off 16 months but i want to get rid of it. Is there anyway of doing it and getting a new car?

Iain hewitson


Answer

Hi Iain,

Yes this is possible. Once you have made an application with us and been approved we would need you to get a settlement figure from your current finance company so we can see how much you owe.

Once this has been done you'll need to get a valuation on your car from a local dealer where you wish to purchase your new car from. You can either let the dealer buy it off you and settle the finance or you may get more money privately from selling the car but this can be a hassle as you're not guaranteed to sell it.

The choice is obviously yours but for speed i'd recommend you go down the dealer route. Once approved with us we provide a no obligation quote and you can buy a car from any dealer nationwide. Please make an application when you're ready. Kind Regards, Rachel

Answer correct as of September 2016

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In this illustration your credit score is set to

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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.

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More related questions

my car finance was for 4 yrs. it is nearly 19 months finished. I would like to pay some money in advance. Is it right to do so? want to save some money.

Answer

Hi Ishor, please call your finance company and explain that you'd like to setlle off some of the agreement early. They will advise you of the process and the steps you need to take. Good luck, Rachel

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Hello, I have a car on finance but i'm wanting to get rid of it. The only trouble is I owe £2500 on it and I think the car is only worth about £1000. Would you still be able to help? Thanks

Answer

Hi Suzanne, thank you for your question.

£1500 is quite a lot of negative equity to be in. Would you have any cash deposit at all to cover some of the difference? If not, are you over 50% of the way through your agreement? If so, you can hand your car back to the finance company which would obviously be the preferred option. If this is a possibility it's great news as we'll then be able to finance a new purchase for you.

Once approved we provide a no obligation quote and you can get your new car from any dealer. 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