Trading in a car with outstanding finance

Chibs

Just looking for some info here. I bought a 161 car and was hoping to trade it in against a 172. I owe about 17k on the car and bought the car for 32k.
Would i have to ring the bank and get my car refinanced? I heard the some dealers use the trade in price to pay off the car and what ever is left goes off the new car. Just wondering what peoples experience is?

MissShihTzu

Are you hoping to trade the car at the same dealer? That will make a difference as to what you can borrow.

XsApollo

Any dealer will do this if you are going for new.
They give you what they give you for your car.
If you owe 17k on the car and they give you 19 then they pay off the 17 and you are left with 2k equity to use against the next car.
It's pretty standard stuff and they all do it.

SBPhoto

Trading a 161 reg in for a 172 is madness in my opinion, you'll get a huge hit on depreciation. is there a particular reason for trading so soon? also was on PCP or personal car loan

Casati

Chibs wrote: »

Just looking for some info here. I bought a 161 car and was hoping to trade it in against a 172. I owe about 17k on the car and bought the car for 32k.
Would i have to ring the bank and get my car refinanced? I heard the some dealers use the trade in price to pay off the car and what ever is left goes off the new car. Just wondering what peoples experience is?

I tried this with a 151 in Jan this year. You call the finance company (e.g. Volkswagen Bank) and they give you the amount you owe now. The dealer will pay this off out of the discounted trade in price

E.g. Say you are buying a 40k car and they offer you 25k trade in, they will net this down by the discount they have on the 40k car, say 4k

As such you'll actually be getting 21k for your car so after paying 17k you'll have 4k to go towards the new deposit off the 36k cash price

Any main dealer across any make should do this for you

Casati

SBPhoto wrote: »

Trading a 161 reg in for a 172 is madness in my opinion, you'll get a huge hit on depreciation. is there a particular reason for trading so soon? also was on PCP or personal car loan

It's easy to argue that buying any new car is madness but it's not unusual for people like the OP to change cars after 18 months and if they have the money to do so more power to them. I'd buy new cars every year if money was no issue

Chibs

SBPhoto wrote: »

Trading a 161 reg in for a 172 is madness in my opinion, you'll get a huge hit on depreciation. is there a particular reason for trading so soon? also was on PCP or personal car loan

I Just fancy a change. I have a Hyundai Tuscon. I seen the new civic and it looks real nice. It will all depend on what the tuscon is worth.

Chibs

Thanks for the replys much appreciated. Ill pop in the dealer and see if we can do a deal.