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Car Finance Expert Q&A

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Edwin Miles. Underwriting Manager

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Can you trade in a car that you still owe money on?

Hi, i have a car on finance. I have had the finance for just over 3 years into a 5 year finance deal. I am awaiting a settlement figure from my finance provider but i suspect it will be around £3,500 and having looked my car is valued from about £3,442 to £4,899.

Would it be possible to trade my car in for a newer one? I have an average credit history although I do have a default against me due to a disputed amount of £650 resulting from PPI that i specifically at the start of the agreement said that i didn't want and my case is currently with the financial ombudsmen. Up until then i had never missed payment and i have never missed a payment since. Do you think you would be able to help?

Posted by Gill on

Answer.

Hi Gill, we'd love to be able to help and from the information you have provided we may be able to get you approved.

Firstly, you can indeed trade in a car that still has finance outstanding. If approved with us you are free to choose a car from any reputable dealership and they will take your part exchange off you. Hopefully from what you've said, you'll also have a deposit in your part ex as it should be worth more than you owe to the existing finance company. Simply, the equity left over in your current vehicle can be used as a deposit on a new car.

We do help people with missed payments and past defaults, so try not to let that concern you for now. When you collect your new car and drop the old one off, it is the dealers responsibility to then clear the outstanding finance. I doesn't look like you'll be in negative equity but, if your car does end up being worth less than you owe, we do have lender that can help with the refinancing of negative equity too.

Please make an application when you're ready. Kind Regards, Edwin

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Question.

Can you trade in a car for a newer one with remaining finance? The car is worth about 4000 - 4500 but the settlement figure is nearer 6000...

Posted by Dale on

Answer.

Hi Dale. Yes you can, however we'd struggle to finance the potential £2000 negative equity. Would you have any cash deposit to help yourself out of this situation?

Posted by on

Question.

I don't think so, I read the agreement again and if you give the car back early the fee is around £3500 rather than £6000

Posted by Dale on

Answer.

Ah ok - you'd need to voluntarily terminate your agreement. As long as you are 50% of the way through the agreement and have made all payments on time you should be able to do this wiping out any negative equity.

Posted by on

Question.

I am about 14 months into it, would a dealer be able to pay the remaining balance to make it up to the VT sum? (£1700) Also would they then be able to use the remaining value of the car as a deposit, say about £1500? Any options I have would be appreciated, thanks

Posted by Dale on

Answer.

Hi Dale, unfortunately not. You have to be 50% of the way through your agreement to VT the deal. There's nothing you can do. You'll have to take the dealers bid for the car and cover any negative equity with cash.

Posted by on

Question.

Hello, I have 3 years left of a 5 year car finance agreement.

I owe £5000 on the car as it currently stands. Is it possible to get finance on another car?

Posted by Alex Boyd on

Answer.

Hi Alex, thank you for your question.

It is indeed possible to get finance for another car. Do you wish for 2 cars on finance or will you be part exchanging your current one? Either way we can help as long as you can show you can afford 2 cars.

If you only want a new car and wish to part ex your current car we just need to find out what your current car is worth. You say you owe £5000 and i'm hoping the car is worth this or more. If you are in a little bit of negative equity we could still help though.

Please make an application and once accepted we'll guide you through the process step by step. We offer a no obligation quote and you can buy a car from any dealer in the UK. Kind Regards, Edwin

Posted by on

Question.

Hi, I have 8 months left of my current finance - around £900. I was looking at a car priced at £1795.

How would it work if I wanted to take out finance on this new vehicle just now? Many thanks for your time.

Posted by Big Easty on

Answer.

Hi Big Easty, thank you for your question and apologies for the delay in responding.

You would simply part ex your current car at a local dealer and they would clear off the finance on your current vehicle. I'm assuming your current car is worth at least £900.

We can then help you finance a new car but the minimum lend we have is £2000. Would you consider a newer more economical car if you could afford the repayments? Please make an application when you're ready and if approved you can choose a car from any dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

Hi, i have a car on finance. I owe around £6000 but the car is only worth £3500.

Would i be able to trade it in for another car with no deposit?

Posted by Amanda on

Answer.

Hi Amanda, thank you for your question.

As you're in £2500 negative equity and don't have any cash to make up the difference the only hope you really have is if you can "VT" (voluntarily terminate) you agreement with your current finance company. This basically allows you to hand the vehicle back to them but you must be 50% of the way through your agreement. Is this the case? Kind Regards, Edwin

Posted by on

Question.

Hello, I've currently got a car on finance and wanting to trade it in for a new one but it's more money.

Can i part ex my one and pay the new car on finance? Thanks, Dan

Posted by Daniel Harrison on

Answer.

Hi Dan, thank you for your question.

You can indeed part ex your current car at a dealership of your choice. The dealer will be responsible for settling any outstanding finance on the car but we can certainly finance a newer car for you if need be.

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, Edwin

Posted by on

Question.

Hi there, I have a car on finance and I'm 2 years into a 5 year contract.

Would it possible to trade my car in for a newer one and put what I owe onto the the new finance? Regards, Chris

Posted by Chris Marland on

Answer.

Hi Chris, thank you for your question.

Yes - we'd love to help you get into a newer car. Do you know what your settlement figure is and how much your car is worth approximately (trade value)? Hopefully you're not in negative equity. If you are we may need you to find a cash deposit to make up some of the difference but we'll cross this bridge at that point.

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, Edwin

Posted by on

Question.

Hello, I have 7 months left on my finance which works out to about £700 - it was for 4 years.

I'm wanting to know if I could get a newer car. The car I'm looking at is £10,399 & I'm really worried I won't be allowed the finance as I have a bad credit rating. Do you have any advice? I got the car 4 years ago in January for £3,250.

Posted by Kara on

Answer.

Hi Kara, thank you for your question.

The good news is that we do specialise in helping those with past credit issues. We can't guarantee an approval at this stage and the amount you can borrow will depend upon your income. You can also simply part exchange your current car in at the dealership where you get your new car from. They will be responsible then for clearing the finance. If you have paid all your car finance payments on time since you've had the car that'd be an added bonus as it'll strengthen your application.

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, Edwin

Posted by on

Question.

I have a car on finance, but am only 8 months into it - it is for 3 years. I want to get a newer car, is this possible?

I may be able to put a deposit down also. My car is currently worth £6500. Could you give me some options of what to do. Thanks

Posted by Sophie on

Answer.

Hi Sophie, this is certainly a possibility. You say your car is worth £6500 - do you know what your settlement figure is?

We can hopefully help you get finance for a newer car though. You'll simply part ex your current car at the dealership where you want to get your new car (they'll be responsible for settling the finance agreement). Please make an application and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

Posted by on

Question.

I'm 2 years into a 5 year agreement and my car no longer serves my needs I need bigger ie van/passenger vehicle. My settlement figure is £8000 can you advise please?

Posted by ann mcgill on

Question.

I have a car on finance I am 9 months into a 5 year agreement.

They have told me a settlement figure of £8000 but the car is worth around £6000 to £6500. I want to look at getting a different car is this possible with these figures?

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