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

Hi. We have a car on a 36 month term with an existing finance company and have 18 months left. We are now expecting our first child and need a bigger car. We haven't had the car valued properly. We have £5k left on the car and it's roughly worth £5500-6kish. But we haven't got the option to upgrade until 3 months left on our agreement with our current finance company. Could we get one with you. How does it work? Thanks in advance.

Asked by Bradley Read
July 30, 2013

Hi Bradley, a great question and one we can certainly help you with. As you only have £5000 finance to clear and you feel the car is worth £5500 to £6000 you'll have a minimum of £500 equity in the car (after the existing finance has been settled) to use as a deposit towards a new car. All you need to do is apply with us, get approved, find a car and we'll sort the rest. The dealer where you part ex your car will settle the existing finance and give you a price for your car. This will determine exactly what deposit you will have. I hope this helps and we look forward to getting you into a new car. Rachel


I have existing finance related questions

Hi, I have an Audi A5 black edition which I took out on finance in September. My settlement agreement comes to approximately £33,000.

The monthly payments are more than I can afford. Would I be able to trade in or swap my car for something

Asked by Eisha
July 30, 2013

Hi Eisha, thank you for your question.

As you only recently took out finance on your Audi A5 you may well be in negative equity. Do you know what your car is currently worth (trade value) as if this is below your settlement figure amount you may need to make up the difference in cash. Would this be possible?

We'd love to get you into a cheaper car but you need to find out this information first. When you have the details please come back and let me know. We can then guide you through the process of part exchanging your car. Please make an application here when you can proceed and once approved we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, I have a 58 plate Vauxhall Astra which I bought in Feb 2012 for £6000. I pay £253 a month and recently asked for a settlement amount which was £5793 and current dealership offers are between £4000 and £4800.

Could I get a

Asked by Daniel Dunne
July 30, 2013

Hi Daniel, thank you for your question.

If you can get £4800 for your current car it looks as though you're in £1000 negative equity. Would you have any cash at all to make up some of the difference as this would help us get you into a better deal?

We can help people who are in negative equity and if you've had a recent clean credit history i'd like to think we can get you a better rate than you're currently on. Please apply when you're ready and if approved you can choose a car from any dealer and we do provide a no obligation quote. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, I am a stay at home mother/housewife, my husband and i recently sold our home and would like to get another mortgage but have hit a bit of a brick wall. We had lots of debt that we have now paid off so we are waiting for the credit rating to go up (re

Asked by Bridget
July 30, 2013

Hi Bridget, thank you for your detailed question. You're correct in thinking that you can't just transfer the finance agreement into your name so that's out of the question. The only options you have are to get a personal loan yourself to clear off the car finance as you say. You could also potentially sell the car to raise any extra deposit needed for the mortgage, clear the current finance and with whatever is left over buy a cheap runaround. If you want to keep the car we do have lenders on our panel that help people in your situation. All we need to do is get you approved and with the funds received settle off the existing loan agreement. You can then personally start paying off the car yourself and this will free up your husdand to get the mortgage. Please apply for a personal loan with ourselves when you feel ready. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 177 People

Hi, i have an existing finance agreement for 5 years and it's my 1st year only. Another problem is that there's a damage in the car bumper due to an accident (I've hit an animal on the road).

I would like to downgrade my car because my circ

Asked by Francis Castillon
July 30, 2013

Hi Francis, thank you for your question.

The best option would be to part exchange your current car for a cheaper one at a local dealership. Do you know what your car is worth (trade vaue) and what the settlement figure is?

The dealership will be responsible for settling your current agreement and we could possibly provide a new finance agreement on the new car if you'd like us to provide a quote.

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
Tim Carpenter Car Finance Expert

Liked by 5 People

Hi, I have a car on finance through Audi and am 2.5 years through a 3 year agreement. I have read though many of the posts on here but still have a few queries.

At the end of the 3 years I will not be able to afford the final payment. Is the

Asked by Andy Dear
July 30, 2013

Hi Andy, thank you for your detailed question.

In short, we need to find out what your car is worth now (trade value) and what you owe to the finance company (settlement figure). Once you have this information we can then determine whether you are in negative equity or not. If you're not in too much negative equity (under £500 approx) you can simply part exchange your car now at a dealer of your choice and they are responsible for settling the finance.

A deposit isn't necessarily required and as you only have a few missed payments here and there i'm reasonably confident we can get you accepted for finance and we'll be able to guide you through the process. Even if you decided to keep your car at the end of the agreement we could re-finance the balance if need be (you don't have to have the cash in your bank account to clear this immediately).

Please make an application when you are ready. Kind Regards, Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 11 People

Hi, I have a 2004 VW Golf on finance and still owe approx £4995 on it but I think it will be worth around the same. I need to phone for the early settlement figure, however we want to change for 2 small cars as we now both need a car for work, is this pos

Asked by Stacey
July 30, 2013

Hi Stacey, yes this would be possible. But as you say you need an exact settlement figure from your finance company on your Golf first and then a valuation on your current car - use parkers.co.uk as a guide. If the numbers stack up make an application and we'll try our best to get you approved and into 2 cars in the quickest possible time. Rachel

Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 4 People

Hi, I am 8 months into a 36 month finance with Motonovo. I need to upgrade to a newer car for work costing around 12! I won't have any money for a deposit or money to cover any negative equity. Do you think it would be possible to get a new deal to cove

Asked by Peter hall
July 30, 2013

Hi Peter! Yes this is something we can look into for you! You would need to settle your existing finance in order to swap the vehicle, so get in touch with your finance company for a settlement figure, once you have got that, make an application with us so that we can look into getting you a new approval and providing you with the options. We do have a number of lenders that can help with refinancing by adding negative equity (when your car is worth less than you owe) onto new car finance, so we may be able to help.
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 8 People

Hi,I have Hire Purchase on a Vauxhall Corsa and the remaining balance is exactly £10,000. I pay £192 per month and started this in March 2012. The opening balance was £11,538. As I need a car I want to continue on finance but pay less each month. Is it po

Asked by Christopher James
July 30, 2013

Hi Christopher, Thank you for your question, I apologise for the delayed response. Firstly I would advise that you get a settlement figure from the finance company as this should be less than the remaining balance as it reduces the interest. Then I would advise that you get a part exchange value on your existing vehicle from a reputable dealer. We can then assess the level of negative equity in the car and see if it would be possible to include it in a new agreement on a different vehicle (This is usually possible), however there is a chance you would require a deposit. Alternatively you can wait until you are half way through an agreement and opt to voluntary terminate and hand the vehicle back. Please make an application so we can see what we can do.
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 6 People

Hi. I am only 12 months into my current 48 month PCP with VW finance. However my circumstances have changed and I now need a larger car. Is it possible to refinance to purchase a new (used) car with a different independent car dealership? I have negativ

Asked by John Roberts
July 30, 2013

Hi John, quite simply you can indeed re-finance. We just need to find out what your settlement figure is and what your car is worth approx (trade value). If you're in lots of negative equity we may need you to place a cash deposit in to make up some of the difference. When you part-ex your current car the dealer will settle the finance and we can finance the new car of your choice. Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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