vehicle finance

[HELPIMLOST]

i currently have a vehicle on a 4 year hire purchase, i have 3 years remaining, i would like to trade in the car valued at �11,500( but �14,000 to clear the finance) for a new car valued at �15,000 how does this work? can it be done? do i have to have 2 finance agreements?

[Skyline D]

It can be done provided the finance company consider you a good risk. Effectively you have negative equity on the old vehicle but they will still potentially lend you �17,500 secured on the new one to buy the car and clear the existing debt.

Likely they'd want a reasonable cash deposit also though.

[chrisemmott]

It would be higly unlikely that the finance company would lend �17,500 on a vehicle valued at only �15,000.

Your existing finance company would require full settlement of the existing agreement before they release their interest in the vehicle. The new company may however finance the additional money on a non secured basis (therefore not secured on the new car), depending on your credit status.