Finance Question

bennyx_o

Is it possible to transfer finance owed on one car to a new car? Eg, I trade my car in in a garage, and get another from them, can I transfer my finance onto the new car, or do I need to get a new loan to pay off the old one? I'm with GE Money, I've called them already but the lady I spoke too didn't exactly help.

Cheers.

Anan1

AFAIK, you have to get a new loan. Have you spoken to your bank - they're often cheaper than the finance houses?

bennyx_o

Hm, suicra, Didn't really want to get a loan. I never thought of it, tbh. I suppose i'll have a chat with them tomorrow.

Eoin

You have to get a new loan because financing / HP is secured on the car. This loan can still be with the same company, but it will be a new agreement. The previous car that the finance was on has to be "released" by the finance company.

You may find that GE money are happy to finance the difference on your trade in, in which case the dealer will deal directly with them once you have signed the papers.

I don't know if bank loans work out much cheaper than HP deals, but they have the advantage that they don't have any claim to your car, making it a lot easier to change cars. Also, if you go for a variable rate, you can put extra money into the loan if you want.

bennyx_o

Yea, thats pretty much what the girl said to me, just took her a while to say it. The only thing is, the car is cheaper than the finance, the dealer said he couldn't finance the car for the amount owed.

Eoin

bennyx_o wrote:

Yea, thats pretty much what the girl said to me, just took her a while to say it. The only thing is, the car is cheaper than the finance, the dealer said he couldn't finance the car for the amount owed.

Not sure I get you - are you trading down?

bennyx_o

I wouldn't call it trading down. I'm looking to get an 03 smart roadster, and I have an 06 Smart ForTwo. It's better specced, and an all round better car (IMO, anyway), so I'd call it a cross-grade if theres such a word. Crazy, I know, but, I never was the smartest person.

seamus

Bank loans will certainly allow you this. My motor loan isn't tied to the car (I read the T's & C's!), so if I wanted I could ask them for a little more and buy a new car. Or a second car. As eoin says though, HP agreements are tied to the vehicle so that if you default, the HP company can reclaim at least some of their money back.

I'm looking to get an 03 smart roadster

How much if you don't mind me asking? I was looking to get one of these last year. Lovely little car, very expensive but cheap insurance.

Eoin

bennyx_o wrote:

I wouldn't call it trading down. I'm looking to get an 03 smart roadster, and I have an 06 Smart ForTwo. It's better specced, and an all round better car (IMO, anyway), so I'd call it a cross-grade if theres such a word. Crazy, I know, but, I never was the smartest person.

By trading down, I just meant that your current car is worth more than the new one... I would just buy out the HP with a standard personal loan. That means you can sell the car, and there is no messing about with the finance company if you want to sell or trade your car in.

bennyx_o

seamus wrote:

How much if you don't mind me asking? I was looking to get one of these last year. Lovely little car, very expensive but cheap insurance.

It's €16,750. Which is a bargain, IMO, considering the smart centre in Blackrock are selling them for 25,000+. Ok, they might be a year or two younger, but that doesn;t justify over 10,000 in the price.

eoin_s wrote:

By trading down, I just meant that your current car is worth more than the new one... I would just buy out the HP with a standard personal loan. That means you can sell the car, and there is no messing about with the finance company if you want to sell or trade your car in.

I'm leaning towards this option ATM. It's just trying to get the loan thats the tricky part.