Can I Get A New Car Loan and Settle Current Existing Finance?
Can I get a new car loan and settle my existing finance?
November 19, 2020
Whether you’re able to get a new car loan and settle your existing finance or not depends on a few different things.
First, you’ll need to contact your finance provider and get your settlement figure.
- If your car is worth more than the settlement figure, you may be able to use the difference as a deposit towards a new car.
- If your car is worth less than the settlement figure, then you’ll be in negative equity. If this means that you can’t pay the settlement figure, you may need to find another form of finance to settle your existing finance.
- If you’ve paid more than 50% of the total amount repayable, you may be able to voluntarily terminate your hire purchase finance agreement.
- If you’ve taken out a personal loan to finance your car, you may be able to sell it privately and clear the loan before applying for a new car loan
When you’re ready to apply for a new car finance agreement, get a quote to find out more.