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Car Finance Expert Q&A

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Edwin Miles. Underwriting Manager

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Get a new car loan and settle current existing finance

Hi there, i am looking to upgrade my car but i still have an existing finance agreement.

Would i still be able to get finance from you to pay of the remaining finance i have along with financing a newer vehicle? How does this all work?

Posted by Lee on

Answer.

Hi Lee, very simply you could part exchange your current car at a dealership of your choice and the dealer would settle the finance with the existing lender for you. If the car is worth more than you owe you can use the equity in the vehicle as a deposit towards a newer car.

What is your car worth and how much finance do you have outstanding? If you're in negative equity (where your car is worth more than you owe) you will need to find the funds to cover this to settle the finance fully. However, we do actually have lenders that can cover negative equity by adding this onto a new finance agreement. If you are in lots of negative equity and you're over 50% of the way through your agreement you are within your rights to hand the car back to the finance company. Beware of any charges though dependent upon the condition of the vehicle.

The other option you have is to sell the car privately, therefore clearing the finance before applying for finance on a new car. You could potentially get more for your vehicle but it can be a lot of hassle and you're not guaranteed to sell your car either.

Once approved we provide a no obligation quote and you can get a car from any dealer in the UK. Please apply when you feel ready. Regards, Edwin

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Question.

My car is worth around £1000 and I owe £3000. I would like to upgrade to a five door car.

Posted by Lee.Christie on

Question.

Hello, I am currently owing £8103 on my current car finance agreement. I have only had it since February and I believe my settlement figure is just above £6000.

I do not want the car any more and I have seen a new car I would like which is £6790. I went into the garage which I have my current car from (the new car is at the same garage) and they were able to settle my old finance but the new company would not lend me finance.

I am sure this will mean I will not be able to get car finance as I have only just been refused but I thought I would just ask what you thought anyway. Many Thanks, Alice

Posted by Alice on

Answer.

Hi Alice, just because you have been declined by your current lender doesn't mean we can't get you approved with another lender on our panel.

Please make an application on our website and we'll try our best to get you approved with a lender that can offer the best rate for your circumstances.

Once accepted we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Edwin

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Posted by Sheak Hakim on

Answer.

Hi Sheak, thank you for using our Q&A. How long is your current agreement for? 48 or 60 months? When you get to 50% of the way through your hire purchase agreement you can voluntary terminate the agreement (follow all the regulations set by the finance company) which means you can hand the car back to the finance company without having to settle any negative equity. Please check your paperwork or call your current finance company to find out more information. If this isn't an option for whatever reason we can take your current car off you and settle the existing finance and get you into a new car. Please apply when you're ready. Kind Regards, Edwin

Posted by on

Question.

Good evening, I have a car that i still owe roughly £1000 finance on as a settlement figure, with the agreement running until July 2013. I pay off £104 per month. My fiancée is pregnant and due in October and as the existing car is a 2 seater, i'll need to change car to a more family suited car. I am finding this hard as i'd need to find someone to settle the finance and get me into another car, is this something you can help me with? If so, i'll give you further details. Thanks, Mark Fryer

Posted by Mark Fryer on

Answer.

Hi Mark, Yes - we can help settle your existing finance. What is your car currently worth? Are you in negative equity and do you have a cash deposit? Regards, Edwin

Posted by on

Question.

Hi, I am looking to upgrade my car but not sure how this all works. I'm just over 2 years into my finance agreement and have just under £5000 left to pay but looking to upgrade to a newer car which will cost just under £8000. Is it possible to get a newer car? How does this all work? x please help!

Posted by Lisa on

Answer.

Hi Lisa, we can take your current car off you in part exchange and settle the existing finance. We can then get you into a newer car. The only thing i need to know is what your current car is worth approximately (trade value). You say you owe £5000 to the existing finance company but if the car is worth only £4000 you'll be in £1000 negative equity. That's just an example and this could be the opposite where your car could be worth £6000 and that would mean you'd have a £1000 deposit to go down towards a new car. Please let me know which way round you are :-)

Posted by on

Question.

Hi there, I have car finance at the moment but i want to return the car and settle the finance and get a cheaper car without finance. Does every car garage settle finance in my existing car and at the same time part exchange? thanks.

Posted by Francis Evaristo on

Answer.

Hi Francis, yes - if you were part exchanging your current car at a car garage they would settle the existing finance on your current car. Edwin

Posted by on

Question.

Hello, i have a car on finance at the moment , it was a 60 month repayment plan i only have 4 more payments left of £270 . I was wondering would you be able to pay this off if i took out a loan with you. Thank you

Posted by Shahin on

Answer.

Hi Shahin. I would advise that you firstly get a value from a reputable dealer on your current vehicle, and a settlement figure from the finance company you hold the agreement with. We can then see if we can tie any negative equity (i doubt there will be much if any) into a new deal on a different vehicle. Alternatively as you are over half way through your agreement you may be able to voluntary terminate the agreement (you would need to check your original documentation to see if you have this option). You can then hand the vehicle back to the finance company and we can take a new agreement our for you on a new vehicle. I hope this helps. Edwin

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Posted by Natalie Lewis on

Answer.

Hi Natalie, Thank you for your question. I would advise that you get another quote on your vehicle from a reputable dealer. We can then see how much negative equity there is in the car. Once we know this we can see if we can tie it up into a new deal and the new dealer take your current car as a part exchange. Alternatively you could wait until you are halfway through the agreement and opt to voluntary terminate the agreement and hand the car back. I hope this helps. kind regards, Edwin

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Posted by Nathan Halpin on

Answer.

Hi Nathan, we would simply look to use your current car in part exchange and settle the finance with the existing supplier. However depending on your credit profile you may need some form of deposit to make up any negative equity. Once approved we can get you into a new car in no time at all. Regards, Edwin

Posted by on

Question.

I took 3300 finance out on my car, last September, I don't feel safe in it. I want to change it. So, if i see a car i like, does the garage pay off my finance but does that figure get added onto the finance i taking out on another car? Regards Louise

Posted by Louise Stuart on

Answer.

Hi Louise, Ok firstly if you have paid off 50% of the agreement you can opt to voluntary terminate and hand the vehicle back to the finance company. Alternatively if this is not the case I would advise that you get a settlement figure from your finance company and then get a value on your current vehicle as a part exchange from a reputable dealer. Hopefully the part exchange will be enough to settle the finance, if not then we may be able to add it on to a new agreement on a new vehicle or you may need a deposit to cover the short fall. Maybe make an application when you have a moment so we can take a closer look at the figures for you and get you in to a better car asap! Edwin

Posted by on

Question.

I owe £2500 on on my existing car finance and have 17 months left of the term, i would like to part ex the car and upgrade to a newer model. Is this possible? If it is how can i calculate the amount that i can borrow? I would like a 4 year term and i am hoping to be able to get up to £6500 to purchase the new car after my old finance is settled, the car is worth more than the outstanding credit left on it, hope you can help, many thanks.

Posted by Chris on

Answer.

Hi Chris, upgrading your car is quite simple and is possible. You just need to get a valuation from a local dealer and see if you're in negative equity or not. You say you owe £2500. If the car is worth £3000 (trade) then you can use the £500 as a deposit towards a newer car. If the car is worth £2000 then you'll need to find the £500 to make up the difference or we could possibly finance this amount on top of the £6500 you need. I hope this makes sense and we look forward to receiving your application. Lastly, once approved you can choose your car from any dealer nationwide. Kind Regards, Edwin

Posted by on

Question.

Hi I have a car which is scratched a little and not in great condition. It is currently on finance at £99 a month. I have around 3000 left to pay. I have valued the car and its 2500. Can I part exchange this for a car worth around 7000?

Posted by Dominic on

Answer.

Hi Dominic, yes - you can part exchange your car at any dealer and we can re-finance the £500 negative equity that you have as long as we get you approved. Please make an application when you are ready. Edwin

Posted by on

Question.

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.

Posted by Bradley Read on

Answer.

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. Edwin

Posted by on

Question.

Our settlement figure is around £12,000. Our car is worth about £5000 but we pay high monthly fee's due to interest and we need a bigger car due to having 2 babies.

Is there chance of taking out a loan with your company to pay the old finance company off so we can trade our car in towards a bigger one?

Posted by Amanda on

Answer.

Hi Amanda, thank you for your question.

As you're in so much negative equity the only possibility of getting out of the current finance agreement is by being over 50% of the way through your agreement. So, if you took out a 4 year agreement and you are over 2 years of the way through you'll be able to hand the car back to the finance company. Is this the case? Kind Regards, Edwin

Posted by on

Question.

Hi there,

Me and my family are wanting to get a new car as we need more space and that suits our needs. The issue is we currently have a car on finance. We've paid around £2900 off but still have the remainder of the £8000 to go along with a final payment of £4000. It's only a small car so we need a loan for a larger one. Is there anything you can do to help us with this? We don't really know the value of the car but its a 2012 Peugeot 107 Allure. Would the finance need settling too? Thanks

Posted by Sam on

Answer.

Hi Sam, thank you for your question.

You can indeed swap your existing car for a newer and bigger vehicle if you wish. As you rightly point out the finance on your existing Peugeot will need clearing off, so what you need to get is a settlement figure from your current finance company (just call up and they will tell you or post a figure out). You'll also need to get an approximate figure of what you could get for your car when you part exchange it in for a newer car. There are online sources that you can use to get a valuation such as Parkers.co.uk or Glass.co.uk (they provide rough figures only).

Hopefully you're not in negative equity (where you owe more than the car is worth but if this is the case we could still potentially help. If you're not in negative equity then this is obviously good news.

Our personal advisers will be on hand to guide you through the whole process and once approved with us we provide a no obligation quote and you can get your new car from any dealer in the UK. Please make an application when you are ready. Kind Regards, Edwin

Posted by on

Question.

Hi, i'm after upgrading my car but have outstanding finance and i'm in negative equity. Do you settle car finance and then do loans as-well?

I also checked my credit score and it's 602. What are the chances of getting a car loan?

Posted by Joanna Murray on

Answer.

Hi Joanna, thank you for your question.

I'm confident we can get you approved as you have an average credit score and i take it you are employed with a UK licence?

The stumbling block may well be the negative equity. We can cover up to £1000 worth of negative equity into a new finance deal but if it's any more than that you would need to come up with a cash deposit to help cover the difference between what you owe and what you have been offered for your car in part exchange.

Either way we can help guide you through the process but it'd be great to find out how much negative equity you are in. Once we know this and we can do a deal please apply online. When accepted we provide a no obligation quote and you can buy a car from any dealer. Edwin

Posted by on

Question.

Hello, My daughter inquired about part exchanging her Ford Fiesta for a Fiat 500. The Ford Fiesta still had finance owing and whilst with the Fiat car salesman they rang Ford credit and obtained the settlement figure. On hearing this figure my daughter agreed to part exchange her ford fiesta for a Fiat 500.

Three months later she is receiving demand notices from Ford credit for payment and it seems that Ford credit verbally gave the wrong settlement figure, about £1000 less than it should have been.

The Fiat garage are blaming Ford credit. My daughter bought her fiat in good faith that the settlement figure was correct and wouldn't have bought the car had she known it should have been £1000 more. Where does she stand, she is being threatened with arrears letters and she is the innocent party? Thank you

Posted by Elizabeth Mann on

Answer.

Hi Elizabeth, thank you for your question and i'm sorry to hear about the predicament that your daughter is in!

The only item thing that i can think of to help you get out of this issue is the settlement figure from Fiat! Did your daughter get this in writing? If not, you may well be forced to pay the remaining balance. You obviously want this cleared up ASAP as you don't want this effecting your daughters credit record.

The only thing to do is tackle this head on with a manager at the Fiat finance department. It's not really the car dealers fault if he was given inaccurate information. You may be able to come to an agreement hopefully with Fiat. I hope this helps and that you get this matter resolved as swiftly as possible. Kind Regards, Edwin

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