Selling a car with finance to buy another with VW.. Help

millionmystery · 13-06-2023 3:35pm #1

Hi,

I bought a car 3 years ago with finance from Citizen First Bank. Now need to change. Went to get my current car valued today to trade against a VW car, main dealer. Never mentioned car was financed. Wondering how this could work as in would VW buy my car then pay off the finance so I could get a finance agreement on one of theirs through their bank. Sounds a bit mad but really stuck for space and don't want to use the little savings I have if I can at all. Anyone done similar?

Casati · 13-06-2023 3:39pm

https://www.boards.ie/discussion/2058300746/selling-a-car-with-finance-to-buy-another-with-vw-help

Yes this is exactly how it will work, every VW dealer would be well used to paying the settlement figure on your behalf when you tade-in- one of the major advantages of trading to a dealer versus and online direct sales model.

Beta Ray Bill · 13-06-2023 3:41pm

https://www.boards.ie/discussion/2058300746/selling-a-car-with-finance-to-buy-another-with-vw-help

Depends on whether or not the finance was secured against the car. Like was it a loan and finance via a dealer secured on the car or was is a personal loan you approached Citizen First Bank for?

Normally you need to clear the finance first.

In regard to the little savings you have... if you want to waste money, take finance out on a vehicle. Generally speaking, you're paying high interest on an asset that's losing money. It's one of the worst things to take out finance on.

Buddy Bubs · 13-06-2023 3:42pm

yep, they will just clear the finance and give you the balance of trade in value as equity towards your new car.

Beta Ray Bill · 13-06-2023 3:42pm

https://www.boards.ie/discussion/comment/120710409#Comment_120710409

Oh you can trade one finance in against another? I did not know this.

bazz26 · 13-06-2023 4:54pm

Your not trading finance. Dealer will give you a trade in value on your current car, this will include settling the existing finance. The balance (if the trade in value is worth more than you owe on it) will be put towards the deposit for the new car. You then enter into a new finance deal on the new car.

Casati · 13-06-2023 8:44pm

https://www.boards.ie/discussion/comment/120710789#Comment_120710789

Yes exactly this- dealers do this all day long.

As another poster said, buying a car on finance is a waste of money, but that's exactly how most people buy cars, so if it works for you dont feel bad about it

Selling a car with finance to buy another with VW.. Help

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