Car Finance

tuxedo

Hi,

Probably a stupid question but i have Car finance out on a opel astra 04 and i now want to trade in for a new smaller car. if i want to purchase a car from a different dealer is it possible for them to sort the finance / re-finance for this??

cheers,

tux

Seth Brundle

I would doubt it as that would cost them more.
Will the trade in "value" be more than the outstanding finance?

tuxedo

no the finance would be more than the current value... i was thinking it wouldn't be a problem cause its just increasing the finance??

Seth Brundle

Dunno - it would really be up to the dealer (bearing in mind that finance is hard to get these days)

Anan1

Any dealer should be able to settle the existing finance and refinance the new car, assuming you qualify, but you'll need to be bringing a decent sum of money to the table.

tuxedo

why would i have to have decent money more car finance is for 100% or trade in plus finance as balance??

bazz26

tuxedo wrote: »

why would i have to have decent money more car finance is for 100% or trade in plus finance as balance??

Because banks are no longer giving away money like they used to, also cars are depreciating quicker and by more these days meaning they would get less for it if the loan ends up being a bad debt and they have to reposses it. They may only offer you 80% finance on the deal and you have to stump up the other 20% yourself.

-Chris-

Yup, as the others have said, it's possible but it depends on the dealer (or more likely, the bank).

If your car is worth 10k, you owe 5k on it and the new car costs 20k then you're only borrowing 15k for a 20k car. You've got half a chance at getting finance.

If your car is worth 10k, you owe 12k on it and the new car costs 20k, then you're borrowing 22k for a 20k car and you've little or no chance of getting finance unless you've a lump sum to put to it - as bazz says, 20% may be necessary.

Get your settlement figure on your current car and work out what it's worth. You'll need that info before you can approach any dealer/bank (with your eyes open).

alexmcred

You will need to have at least 10% equity in the deal OP or the bank will not even look at it.

MarkN

Really depends on your situation. Every case is different...

Finance places in the past have carried over your negative equity and added it to the new price of the car plus the interest so car might be 20k, interest 3k and negative equity 2k so you're borrowing 25k then in total.

I'm not sure if they'll do this now but it really depends on your own circumstances not what you're advised here. If you've no loans, no credit cards, reliable source of income you may find the links of Bank of Scotland Ireland will do it.