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Can I Get A New Car Loan and Settle Current Existing Finance?

Hi there, i am looking to upgrade my car but i still have an existing finance agreement.

Would i still be able to get finance from you to pay of the remaining finance i have along with financing a newer vehicle? How does this all work?

Asked by Lee

Hi Lee, very simply you could part exchange your current car at a dealership of your choice and the dealer would settle the finance with the existing lender for you. If the car is worth more than you owe you can use the equity in the vehicle as a deposit towards a newer car.

What is your car worth and how much finance do you have outstanding? Hopefully you're not in negative equity (where you owe more than the car is worth - we could still help though if this is the case). If you are in lots of negative equity and you're over 50% of the way through your agreement you are within your rights to hand the car back to the finance company. Beware of any charges though dependent upon the condition of the vehicle.

The other option you have is to sell the car privately and then clear the finance before applying for finance on a new car. You could potentially get more for your vehicle but it can be a lot of hassle and you're not guaranteed to sell your car either.

Once approved we provide a no obligation quote and you can get a car from any dealer in the UK. Please apply when you feel ready. Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 154 People

£
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.


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