How does finance work when trading up

[pimpchez]

Right to keep it short i have finance against my current car , now if were to trade "up" to a slow diesel to the tune of 5-6k more than i owe now how would that work .

would my current finance company offer to loan me more money to cover or would another finance company pay of finance company A and say you now reapy x with us pcm.


In before someone says you want a diesel :/

[JamesD1]

we were in the same situation the other day and its all relatively simple.

o/h traded 12 plate fiat 500 in (all bells n whistles) to a brand new juke n-tec.

nissan bought the 500 off of us for 6.5k we owed 7.5k to finance so we added 1.2k (1000 to finance 200 deposit). so we are on an even keel.

you'd probably be looking at paying some off and having the rest being added into your new finance deal

[pimpchez]

That was my intial thought but i have only had the car 9 months ish. Now i love it with all my heart but id rather let it go while its fine ,before it throws me anymore bills.

Id guess the gap between what i owe and what id get from trade-in especially since i wouldnt be going to a brand new car would be to the tune of £2500

[Toaster Pilot]

They can just roll it into the deal and you pay higher monthly payments as said but I doubt it's going to be cheap - if you're going to a diesel for fuel economy savings then you'll be pissing it away in increased interest / etc.

[xRIEx]

Is this a pcp agreement? Out of interest, which types of agreement allow changing before the end of the term?

[pimpchez]

xRIEx said:

Is this a pcp agreement? Out ofinterest, which types of agreement allow chanting before the end of the term?

No straight normal finance , no balloon or hand back type agreement. Sorry i dont know what chanting means.

[Toaster Pilot]

xRIEx said:

Is this a pcp agreement? Out of interest, which types of agreement allow changing before the end of the term?

PCP/HP will, lease/contract hire will not

[rfoster]

Any agreement which gives you ownership of the car once you have made all payments under the agreement (hire purchase, lease purchase, PCP) allow early settlement and you can offset the value of the vehicle against the settlement figure from the finance company.

Contract hire (where you are hiring the vehicle and don't benefit from ownership) can be terminated early, the cost of this is determined by the leasing company and you'll just hand the vehicle back under that scheme.

With regard to trading up - you will effectively settle one finance agreement and start a fresh one on the replacement vehicle. Very common and easy to do.
R

[xRIEx]

pimpchez said:

No straight normal finance , no balloon or hand back type agreement. Sorry i dont know what chanting means.

I meant changing, damn autocorrect.

[pimpchez]

I think i am probably better off waiting for a legit person to come along for a private sale then go from there instead.Only issue is dealing with Gumtree scammers .

[HTP99]

If you have only had your current car for 9m then you are likely to have rather alot of negative equity, of course it does depend on the length of the current term, cost of the car initially and how much deposit you put in to start with though.

[pimpchez]

All cars loose money thats a given in the real world (classics/superduper cars not withstanding), if i sold mine for what its up for which is cheaper than the rest on the internet ive looked at .Id be able to pay of the finance with that no problem.

So from that point of view its not in negative equaity vs private sale market .Trade prices are a different ball game.