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Car finance question

Discussion in 'General Automotive Chat' started by crypric23, Oct 22, 2009.

  1. crypric23
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    crypric23 Never satisfied

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    [Oct 22, 2009]
    I have no idea where to post this,

    I have 10k finance on my car which i am about to part ex with audi.

    Can you simply transfer the finance to the new car ?

    I have never had finance before so i have no idea.

    its with Barclays partner finance , taken through autoquake
    ( car supermarket kind of place )
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  3. Scotties
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    Scotties Member

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    [Oct 22, 2009]
    If its HP or a PCP type loan I dont think you can. What you can do with that type of deal is terminate the agreement 1/2 way through, which is good if you are in negative equity. Read the small print of your loan
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  4. pns2007
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    pns2007 Member VCDS Map User

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    [Oct 22, 2009]
    Depends whether your loan is actually HP. If its HP its attached to the car and will need settling by the dealer in the px and you will need a new agreement on your new car. If its classed as a personal loan, then you can keep it running along side any other finance you take out on a new car, should you wish to keep it! (Thats my take on it)
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  5. crypric23
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    crypric23 Never satisfied

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    [Oct 22, 2009]
    Ok , it says on my statement that i can settle the loan at any point by paying the balance with a settlement figure , i can not for the life of me find the agreement
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  6. Scotties
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    Scotties Member

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    [Oct 22, 2009]
    ring the finance company and ask for a copy of the agreement. Also ask them to confirm what type of loan it is. Given you got it at a garage its likley to be hp.
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  7. Ben H
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    Ben H On a journey...

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    [Oct 23, 2009]
    I expect that it's a personal contract hire type of thing - whereby the car is registered in your name, but the finance company has an "interest" or "call" on it (this is more common than, for example, hire purchase and is a bit like a mortgage on a house). Effectively, the loan is secured against the car and you can't legally sell it without settling the loan.

    If the loan isn't settled, one way you can change the car is by selling it to a dealer - who pays the finance company off for you. If there's any negative equity (difference between settlement figure and value of the car), then this is added to your new finance agreement. You can also sell to one of the internet car buyers like webuyanycar.com who will settle with the finance company on your behalf; I have done this before and it's a bit weird paying someone to take your car away!

    Be careful with rolling the existing finance into a deal on a new car, because the negative equity can seem "hidden" in the new car loan and you'll end up paying off the 1st car's negative equity long after it's been sold.

    If you are rolling the old deal into a new one, it's best to pay a large deposit to clear the negative equity. I was fortunate to be able to fund the difference between my old car and my Audi through a lucky combination of savings and an unexpectedly high part-ex - but I had expected to need a PCP.

    As they say, the cheapest car is the one you already have!
    #6

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