new car

[fideldyfee]

i would like a new car. problem is u havent finished paying for the one i have. its a 53 plate corsa and i have about a year and a half still to pay on it. i really want a new astra, 3 door, quite sporty, not necessarily brand new. am i able to get it without completely ripping myself off? the place i bought my corsa keep sending me letters saying u can swap you credit deal over no problem but im worried this might be a con?

[Frankieola]

If you want to change your car, you can. Go into the garage and get a part exchange figure on your car against the one you want, Also contact your finance company and get a settlement figure. Whatever is left over after the settlement is yours to put down on the new car as a deposit.

A new finance agreement will be put in place and the old one settled by the garage that takes your car in part exchange.

The only thing you'll have to watch for is if you are in negative equity, (Settlement more than car is worth) Or that there is not enough deposit left over to get the monthly payments to an acceptable level.

I am in the trade and happy to advise, Hope this makes sense, post another message if you want anything explained further.

[fideldyfee]

thanks very much so if i bought my car for �7000 and i have been paying it for two and a half years, then whatever i have paid on it so far is used as a deposit for the new one and then whatevers left is divided into monthy payments, is that correct? and generally if i stick with the same dealer they wont rip me off? do i have to go to the same dealer?

[Loosehead]

No you've mis understood Frankieola.

You have an amount that is owed on your existing car, lets call that AO. You have a price to pay for your new car, let's call that AP. You have a value of your existing car that is what ever the dealer says he will allow you against the new car let's call that AV.

Now if AV is greater than AO then your dealer can write a cheque to the finance company for AO and then the amount of the new finance deal will be AP-(AV-AO)

If AV is less than AO I you will have to pay the difference so that the old finance deal is repaid. The dealer may also want someting from you to act as deposit, depending on whether their finance company will do 100% loans.

[fideldyfee]

oops silly me! thanks i understand now!