Finance Q / New Car Help

mad_allan · 7 Apr 2006 at 14:32

Hi all,

The girlfriend currently has a focus on HP, she has only had it 13 months and now wants to get another car. She paid £5k for the car (1.6 Focus Zetec) + whatever APR it is via finance. She got the deal over 4 years (against my advice) and pays around £130 a month. Now, she wants either a Type R, 182 or a 325ci.

If she went to the dealer and they offered her £2.5k for the focus, she would still have x amount left to pay. Could she then refinance with the same company but pay more than the value of the car (which again, I think is stupid!) or would she have to settle the difference outstanding before getting the new car on finance?

Hope this makes sense and you can offer me your knowledge.

Cheers

Scottland · 7 Apr 2006 at 14:37

I've had that deal offered to me not so long ago, I think it depends on the lender.

What they offered me (this was at the place where I was looking to buy) was

Outstanding Finance - Old car trade in value = £10
New car value + £10 as the price I would have paid for the new car.

I would advise that she gets a bank loan to cover the all the outstanding finance + the cost of the new car, less trade in value of course.

Assuming you can't talk sense into her that is.

[TW]Fox · 7 Apr 2006 at 14:38

So she is in a situation whereby she owes more money than the car is worth, yet she hasn't learn and wants to stitch herself up with even more car finance?

mad_allan · 7 Apr 2006 at 14:46

[TW]Fox said:
So she is in a situation whereby she owes more money than the car is worth, yet she hasn't learn and wants to stitch herself up with even more car finance?

Exactly that - Yet she is adamant this is what she wants to do. It's like pulling teeth getting her to listen!