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I Currently Have Outstanding Finance on My Car. Can I Get A New One?

Hi, I would like to change my current car but I still have outstanding finance on the vehicle. Would it be possible to do this, if so, how do i do it?

Asked by Janis

Hi Janis, apologies for the delayed response.

You can get a newer car even though your current car has outstanding finance. The process is quite simple really. All you need to find out is the settlement figure from your existing finance company to settle the current agreement. You then need to find out what a car dealer will give you for your current car.

Hopefully you won't be in negative equity and the car is worth more than the amount of finance you owe on the vehicle. If this isn't the case you may need a cash deposit to make up the difference. If you can't make up the difference you may be able to re-finance some of the negative equity in the new finance deal.

If you're not in negative equity the dealer will just use the difference between the price he gives you and the settlement figure towards a deposit on the new car. The dealer will then settle the finance agreement for you on your current car and you'll be free to drive off in your new car and just have one agreement in place.

We can often beat finance rates offered by dealers so 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

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