car loans

[rangersjoe]

i am paying my car off with still 1 1/2 still to pay but would like to trade it in for another car. can i do so and carry on the difference with the new car???????

[snapdharlich]

Yes, speak to the salesman and they can transfer the finance. Of coure still remember to shop around as you may still get a better deal.

Try here - I used them and couldn't fault their rates http://www.northernrock.co.uk

[snapdharlich]

Sorry - that link doesn't work, but it's easy enough to find through google

[Sequin]

It depends whether your finance is a straight loan to youself, or a hire purchase agreement. Phone your lender and ask

[gordy_b]

Of course if it is a hire purchase/car finance agreement, then check your agreement.  It is possible you would be able to hand the car back to the finance company having only paid half and (if you have kept reasonable care of it) owe them nothing.  I have done this on TWO occasions to NO adverse effect.

This rule is still contained with car finance arrangements under the consumer credit act 1974 and is not "dodgy" in any way....in fact it is your RIGHT.  Most car dealers won't tell you about this because they get commission on the volume of finance they sell meaning they would lose out if they made you aware of it.

On your document it should have a section called "Termination - your rights" which goes on to explain how it works.  Good luck.

[Oneeyedvic]

Firslty, do you have any equity in your car - ie what is your car worth to a dealer, and what is the balance outstanding.

If you have negative equity, then gordyb is correct with regard the 'halves' rules under the Consumer Credit Act. It is the bain of the finance industry costing the industry a fortune.

I should point out that *some* companie will put on your credit file that you have handed the car back / terminated your agreement  (as opposed to settled). This **may* averesley affect your rating, but does depened on which company you are using.

I would point out that this is only a right under hire purchase agreements and if you have it as a loan then I am afraid you have no rights.

If this is the case, then you really need to pay off the negative equity and start again with a new car.

 

If you have any equity in your car then you can go to the dealers and use this as your deposit for a new agreement.

[tubeway]

If you hand a car back on the halves rule it is not allowed to affect your credit rating as you have the right to do this by law under the consumer credit act (depending on the type of finance).

When I was a business manager in the motor trade (business manager is a finace and insurance specialist) - I used to advise customers that this was a way to terminate their agreement. As long as they had paid more than three months on the agreement I had recieved my commission - the finance company could not debit it back - and I git paid again on the new agreement. It is the finance companies who would rather that you did not know.

I have actually returned a car on the halves rule myself with no adverse effect on my credit rating at all. the finance company tried to inyinate that it would - but later didi admit that it would not.