Can I take a car on finance with existing finance?
Okay so I have a car out on finance (conditional sale) that I took out last year for 2 years. I currently have £1187 left on my current finance deal. I took my car for it s MOT last week and it failed and the garage want over £900 to sort the issue so I called up my dealership and told them the situation and they told me to bring the car down and to have a look on their website to see if there s any of their cars I fancy. My question is how would it work in terms of me getting a new car from them with existing finance on my current car?
- NeilLv 79 months ago
If your old car is worth more than the £1187 outstanding, the dealer will pay off the finance, and put the difference towards the deposit on a new car. You then take out a new finance agreement to pay for the rest of the new car.
If the old car is worth less than the £1187 outstanding, you will need to find enough cash to pay the difference (so that the finance on the old car is paid off) and pay a deposit towards the new car. You then take out a new finance agreement to pay for the rest of the new car.
- dtstellwagenLv 79 months ago
If your credit is good enough they will add what you owe to the price of a replacement car, then subtract what your old car is worth (trade in value minus repair costs) and finance that amount..
If the value of the old car is less than what you owe then you will end up owing more than what the new car is worth. Your insurance rate will likely go up to include some type of "gap" provision to pay off the upside down loan in cases of theft or damage.
- RobsteriarkLv 79 months ago
All cars need routine maintenance, and some parts have a finite lifespan, such as clutches, alternators, starter motors, cam-belts and other similar consumable parts. When you’re unlucky a few of those things all come up at once.
£900 really isn’t a huge bill if it’s on top of a routine periodic maintenance service.
Any replacement car you get could have similar or worse hidden nasty surprises waiting for you, even if the car is thoroughly inspected before purchase.
Your outstanding finance isn’t going to vanish, one way or another it will need to be repaid, but dealers can do a bit of creative accounting to roll over that debt onto a new finance deal if you trade in your current car. But make no mistake, they will only be doing themselves favours: you’ll get a rock-bottom trade-in on your car as they’ll deduct the cost for repairs which cost them far less. They’ll then give no discount on the “new” car to inflate the finance.
You’ll dig yourself into a much deeper financial hole
- boy boyLv 79 months ago
dont expect them to help with repairs ...shame you never said exactly why it failed its mot ...if you change your car you have to pay off existing loans ..so you will be taking a new loan
- What do you think of the answers? You can sign in to give your opinion on the answer.
- 9 months ago
I did not get your question exactly.