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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?

Asked by Julie-Anne

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

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 21 People

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