Finance onto another car?

[blaked93]

Hi guys,
I currently own my car which is on finance. i have paid £770 of the 10,000 i owe for it. i have been paying it for 7 months. I have now found a much nicer car that i want which is for sale at 9,500. i was just wondering how i go about getting rid of my cars finance and such. Cheers guys.

 

[Dazza1]

Do u want to pay it off or transfer it to the new car? I don't think u can do it yet cos u owe so much

 

[maggi200]

Where's the new car for sale?

 

[Chicken]

I've changed my finance over from car to car a couple of times. Not a good thing to do as you end up paying more and more. But the way to get it onto a new finance is get a settlement figure from the current finance company and take it to where the car is being sold. Then tell them the figure and they can work out a new finance price for the new car with the money you owe from previous car minus money for your car if that makes sense.

 

[maggi200]

More importantly what's the new car actually?

 

[Matt]

They most likely won't give you a settlement figure as you're not 1/2 way through the agreement. No harm in trying though...

 

[Chicken]

They most likely won't give you a settlement figure as you're not 1/2 way through the agreement. No harm in trying though...

I hadn't had my fiesta a year and got a settlement figure and changed so I think it will be down to the company.

 

[blaked93]

its a twingo gordini. I am in love with it. And cheers guys i will give the finance company a call.

 

[Chicken]

its a twingo gordini. I am in love with it. And cheers guys i will give the finance company a call.

if they give you a settlement figure it's likely it will be valid for 28 days

 

[Alex_225]

As said, you need that settlement figure and then you'll know what you need to pay to clear it.

I settled up early (2 years instead of 4) on my old Clio 172 and was allowed to sell the car as the loan was secured on the car but the car was mine, if that makes sense.

The trick is how much the car is worth compared to how much you owe, plus does the finance have a fixed interest on it. As although you may have paid off £770 so you'd say you owe £9,230 left but you have to assume your current car would clear that or you top up the finance further. Also check that you don't have a fee for settling early or if there's a set % of the interest that goes on top too.

One other thing I would say, although this is just my thinking I'd try and pay a higher amount per month. I'm assuming you're paying about £110 a month but that doesn't really chip away at the debt very quickly.