Car Loans Query

Honest John Back Room » Motoring discussion
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Wed 8 Aug 2007 21:11
Car Loans Query - III
I was just wondering if you can clear something up for me.

I am thinking of getting another car and use my car as a trade-in however I have still to pay off the loan in full. I am not looking to borrow more money for the new car but was wondering if the loan can be transferred to the new car without having to arrange a new loan at a higher interest rate?

Thanks.

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Wed 8 Aug 2007 21:16
Car Loans Query - Manatee
I the car is subject of a hire purchase or conditional sale agreement (could be dressed up as a PCP) then you will have to pay it off. If it's an unsecured loan (typically you would have got this direct from your bank) then you wouldn't have to.

You need to talk to the lender if you're not sure. The dealer is not your friend (unless he really is your friend).
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Wed 8 Aug 2007 21:21
Car Loans Query - III
Yes the loan was hire purchase through the dealer, I thought it would be too easy to just transfer the loan.

Thanks for that.
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Wed 8 Aug 2007 22:27
Car Loans Query - Pugugly {P}
Dealers will sort it for you when you do the deal...
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Wed 8 Aug 2007 22:45
Car Loans Query - spikeyhead {p}
that assumes that the dealer selling the new car uses the same loan company as the current loan. If not then you'll need to get written confirmation of the settlement figure
--
I read often, only post occasionally
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Wed 8 Aug 2007 23:01
Car Loans Query - Avant
True, but the dealer can still settle it with (whomever) and roll up any negative equity into the new loan or PCP. The local Toyota dealer was proposing just such a deal to me today to take my Mercedes in PX.
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Wed 8 Aug 2007 23:29
Car Loans Query - III
It will probably be with the same company but I was hoping I could keep the same interest rate and just pay the difference whilst transferring the current loan.
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Wed 8 Aug 2007 23:35
Car Loans Query - Pugugly {P}
Speak to them direct before you look for a car. If you have a good record they'll want you to stay with them and you'll probably get a better deal by dealing direct. Phone their helpline.
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