Part ex with a car you owe money on.

[vtgrrrs]

Just wondering, if you have a car that you've bought that still owes lots of finance on it (bought from renault using their finance company) can you part ex it in another garage? If so how does it work? Does the garage (not renault) you want to get the second car from just transfer the finance to their car or what?

As you can tell, Im new to this car finance game.

Cheers, Tris

 

[kully]

depends if you are taking out another loan out for the new car , normally the new company will pay the outstanding monies owed on the old car and add it to their loan accordingly for the new one

 

[Pete.]

Usually they will transfer or settle the outstanding finance on your car if you are part exing it. Depends on what you are trading it in for and how much they want or value your car at. They can also ask you for a settlement fee for squaring off the Finance on your car. Be careful as a friend part exed their car from a Ford to a VW and thought that they owed £4k and when the VW dealer went to transfer the finance Ford said that it was £6k still outstanding on finance.

 

[Duncx]

Finance companies really sting you if you want to settle, bank loans are much better if you know you'll want to settle early...and they can't take you're car back if you don't pay

 

[LRTom]

Just done it mate, they'll sort everything out for you. If they value your car less than what you owe you pay the difference. My advice, don't tell them how much you owe until you've had a part-ex quote!