Finance Question...

[Willis]

Wasn't sure on the best section for this, but anyhow...

I've recently had my 12 Month statement from Santander which states I owe ~£10k still.

I've always said I'd be hard pushed to let the 197 go, but I've seen something that takes my fancy (still RS also) and is up for £6500 at a Renault dealer. If, for example I could get £6500 for my 197 as a trade-in, how would it work with the finance? Would I simply carry over the £3500 remaining onto the new car? Or is it a bit more complicated than that? Any help appreciated.

Cheers!!!

Will

 

[Leigh]

You may be able to carry some but not all because its negative equity and finance companys only allow a certain ammount.
You should expect to put a big cash lump in to sort the negative equity,

Hops this helps

Leigh

 

[Willis]

Cheers Leigh!!!

The 197 is the first car I've had on finance so it's all new to me really.

To be honest, I'd be more than happy to keep the Clio, just saw something at what I think's a really good price and the intrigue has got to me!!!

 

[Leigh]

tbh after filling the neg eq etc you maybe better of staying with the clio just a heads up.

 

[Arran]

You could probably do it somehow. If the cars are worth the same, then techically the only difference is the model and number plate! Lol!

 

[Willis]

Leigh; That wouldn't bother me one bit, it's not like the 197 is a bad car!!!

I have a little shopping list for her anyway so if the swap isn't a go-er then I'll treat her to some goodies instead.

Arran; That's what I'm thinking... I paid £8500 for the 197, owe just less than £10000 and my trade-in would be roughly the same as what this other one is up for at £6500. But, finance things are rarely simple!!! If they turn around and say they can do a straight swap and just change the finance details about then I'll be very tempted indeed but if it's a case of me having to find a few hundred quid then I won't bother.

 

[Rocko]

They may do it as a personal loan and You will probably if not def have to take out gap insurance on it aswell because the finance will be greater than the value of the car and if anything should happen you'll be able to pay the negative equity finance off

 

[Willis]

I have GAP insurance now, I think it worked out at about £7 extra per month so I thought it was worthwhile.

 

[trailerparktrev]

Methinks you got royally fleeced by whoever sold you the Clio. Am I right in thinking the car you bought was £8.5k, you've paid a year's worth of repayment and still owe around £10,000?
Mate, talk to the finance company and ask for a settlement figure (which will be a lot less than £10,000) then talk to your bank and get a re-financing loan and pay off the finance.

 

[Onthemotorway]

Doesn't it depend on what type of finance you have...

If it's a Loan then it's your money to do with as you wish, if it's a Hire Purchase agreement then technically you don't own the Clio until you've made the final payment. I can't see them offering to change the finance over for free, but it may not be that much.

Only way to find out would be to give'em a call.