JayCC

Ok, this is all hypothetical speak.. I'm basically clueless about finance.

My car's value is £2000 as a trade in, for a car worth £6000.

Obviously then the finance agreement would be for £4000+ the XX%APR.

But i still have £800 left on my finance agreement for the original car i'd like to trade in.

Would the place I get the new car be able to pay off the £800 and use the remaining £1200 as part/full deposit?

I'm basically desperate to shift my car, and have found one i like, but i don't want to get my hopes up if people know this isn't allowed etc.
I know the other option is to pay it off myself, but this would be a hell of a lot easier!

Benni

Could you sell the car and get a loan? The car should be worth a little more private, meaning less money being borrowed.

Benni.

JayCC

I could, but i'd have to pay off the finance, then wait however long to sell it..

Just easier to get rid of it the part ex way..

Benni

Ah right, I see. Well I wish you all the best, I can't anwer the original question, lol.

COMEDY DAN

The new garage will clear the old finance and any fees, and use the remaining value of the old vehicle as a deposit for the new one.
Good luck with the sale.

Most garages are happy to do this as it sells another vehicle from their forcourt.

JayCC

This is some gooooood news! Thankyou!

Paddy

Who is your current finance with?

Another option is to get finance for your new vehicle with your current provider. They can do what's called a "contra loan" and transfer the outstanding amount to the new loan.

It's all much of a muchness but as you're already a customer of someone, you may find it easier and less hassle just to go down this route.

Either way, it's best to contact your current lender and get a proper settlement figure as there will undoubtedly be early repayment fees on top.

JayCC

I kinda get what you mean, but wouldn't the garage have their set finance company?
And yeah, i've taken all the early repayment aspects into account, i'm just working hypothetically so i've got at least a little idea.
Gotta test the water before jumping in^^

Paddy

A main dealer might and some of the car giant places do but we use whoever gets back to us quickest and/or accepts people in the 1st place.

Finance companies are crying out for decent business at the moment. If you've got no defaults etc. you'll find it very easy

JayCC

So can i ask them to use my finance company?
If not.. whats the typical APR at the mo, cause it was cheap as fuck when i got my golf.

Paddy

Of course you can. Just this morning a customer from a long way from us bought a car with finance they'd agreed before they'd even seen it.

Some dealers may prefer not to as we have to obviously provide consumer license details etc. but it's not much of a hassle to tbh.

APRs vary mate depending on your status and the company you're gong with. I did one last week to an old customer at 16% over 2 years then some divvy cunt scrotum bird took some at 40 odd the week before. It all depends! GE Money are offering 3-5% flat on some deals.

Remember, if you're a prime customer finance is sometimes negotiable! The dealer may whack a couple of % on the rate to get more commission.

JayCC

Firstly, 40%!! LOL and she took it??!!! HAHAHA.

The car i'm planning on is just a X owners civic type r.
I paid 8k (stuuuuuuuuupid) for my golf from a vw dealer, 5k on finance over 4 years put it up to 5400. i'm so terrible at maths i can't work out the sums..

thanks for your help Paddy! its much appreciated!

Paddy

The girl that took that was a fucking scrote and was lucky anyone would lend her money in the first place!!! I wouldn't have loaned her a fiver to get a taxi.

*EDITED BECAUSE I MISLEAD YOU! AND AM THICK AS PIGSHIT TOO *

Personally, I fucking HATE dealing with the finance side of things, mostly because the reps are all fucking thick as pig shit Apart from our GE Money rep who is a dude.

Chip

iTrader: (3)

Paddy, flat rates are simple as fuck, APR's are a lot more complex and you clearly dont know the first thing about them Im afraid mate.
Thats not actually how flat and APR figures work out, you have TOTALLY misunderstood what an APR actually is.

An APR is an annualised Percentage Rate, and includes all costs based on the remaining amount at that point.

Typically it will work out to be about double the flat rate, depending on fees etc.

So for example a flat rate of 3% over 4 years, on 5K will be 12% which is 600 quid interest, typically with an arrangement fee of about 100 quid on top, so 700 total, this will work out to be about 6% APR for the term of the loan



Great advice other than that though

Paddy

I said I fucking hate doing it

stevenebm

iTrader: (6)

sorry to hi jack thread but chip might be able to answer this.i just found out i have a default on my credit rating for £180i phoned aa who the loan was with about 5 years ago.i havent heard anything from them and thought it was paid off.they said it will be passed on to a debt collection agency and they will contact me.this was a year and a half ago it defaulted and nobody has contacted me.i only checked my credit history as i was looking to get a new car.i will happily pay the £180 to get it clear but who do i contact?

Chip

iTrader: (3)

Sorry mate I dont know, I write finance software for a living so know all about that side of things, but thats my only involvement in finance I know very little about debt collection.

stevenebm

iTrader: (6)

ok mate.was just incase as nobody seems to be able to point me in the right direction.

Chip

iTrader: (3)

Well a good place to start would be by getting an Equifax report about yourself I guess mate, but its not something I have personal experience of so Im only guessing.

http://www.equifax.co.uk/