Can I Swap to A Cheaper Car on Finance During My Current Agreement?
Hi, I have an Audi A5 black edition which I took out on finance in September.
Would I be able to trade in or swap my car for something cheaper i.e. Audi A1?
December 21, 2021
Every car finance agreement is tailored to an individual borrower and specific vehicle so it’s not possible to simply swap to a cheaper car during your loan term. However, you do still have options.
- If you have paid 50% of the total amount payable on your agreement, then you have the right to voluntarily terminate your PCP or HP loan and hand the vehicle back. The amount payable includes any fees, interest, and the balloon payment in a PCP deal.
- If you would like to pay off your loan early and sell your car then you can request a settlement figure from the lender. This is the amount it will cost to pay off the loan in full. Clearing your loan early will help you save on interest payments and the further you are into your agreement, the lower your settlement figure may be, but be aware that you might have to pay early settlement fees.
- If you’d like to keep your car but lower your monthly repayments, you can look for a refinance loan. When you refinance, you’ll settle your existing deal with a one-off payment and take out a new finance agreement. You could then swap to a loan with cheaper monthly repayments and a longer repayment period instead.