Loan & Car

lydialaois

Hello,:rolleyes:

I bought a car 1.3 years ago by getting a loan from FirstCitizen (the loan is 3 years term). Now I see this car is not useful for me as I need a bigger one.

For the loan remains to pay the quantity of 8.234€ (My car Value is 9500€ now)

I am just wondering if it is possible instead to cancel the loan to swap for another car in a dealer (after mine is taxed) and refinance the difference for the years that would be necessary.

I m not sure if I explaining it properly

Thanks

Spocker

You won't be able to "cancel" your existing loan, it doesn't work that way. Depending on which finance company you choose to go with, and assuming the garage are agreeable, the deal would probably be something like this:

1. Trade in value of existing car (may not be €9.5k, but lets assume it is): €9,500
2. Value of new, bigger car: €15,000 (for example)
3. Cost of repayment of existing loan (there may be penalties for early repayment): €8,234

So a new finance amount would be (2+3)-1 or (€15,000+€8,234)-€9,500=€13,734

What you would be doing is clearing/finishing the existing finance of €8,234 and taking out new finance for €13,374 (for example).

lydialaois

Spocker wrote: »

You won't be able to "cancel" your existing loan, it doesn't work that way. Depending on which finance company you choose to go with, and assuming the garage are agreeable, the deal would probably be something like this:

1. Trade in value of existing car (may not be €9.5k, but lets assume it is): €9,500
2. Value of new, bigger car: €15,000 (for example)
3. Cost of repayment of existing loan (there may be penalties for early repayment): €8,234

So a new finance amount would be (2+3)-1 or (€15,000+€8,234)-€9,500=€13,734

What you would be doing is clearing/finishing the existing finance of €8,234 and taking out new finance for €13,374 (for example).

Thanks for your clear explanations !
Have a good day