Settling car finance and taking out new

[Oj29]

Hi,
I'm looking at settling a PCP early; the valuation of the car is greater than the settlement figure just about so that seems to be fine - the new car dealer with give me that value for my car, settling the finance which means I can then sell to them. (just wanted to check this is correct first!)

Once that has been completed, i'm gonna be taking out a new PCP deal on that same day. I'm a bit worried about how the finance situation will work; if they look at securing the credit for me before the p/x occurs, i'll have a relatively large amount of debt behind my name. If they look after and it gets decline, i'll no longer have a car and can't secure a new one.

Does anyone have any advice? Its the first time I've done this so a little new! I dont think im in a worse position credit wise then I was when I took the original PCP out, just concerned different lenders have different criteria? Anyone know?

Thanks in advance!

[PositronicRay]

It'll be fine, just like buying a new car except it's you're old one. Just watch for charges, the dealer will want to make some money out of this.

ETA, You may be better just taking a personal loan or going to a specialist car finance company.

Edited by PositronicRay on Monday 13th July 21:38

[red_slr]

Its quite normal for this to happen and IME it should be fine.
Your PCP will be agreed some days in advance. Yes you will only sign it all on the day you PX / collect but you will know well before hand its all set up.