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[Del Boy]

My eldest boy is going to be making me a grandad soon  Anyway basically he's got a Corsa at the minute on finance a limited edition one, he's paid off £3600 already since March last year anyway he and his mrs need a bigger car, for example a new shape Astra. Anyway what they're wondering is there's £8000 ish to pay on the Corsa, so if he were to give the Corsa back and get an Astra how would they work out the payments on say another car worth £11,000? Would they discount the £8000 as he's given the Corsa back and then start a new deal at £11,000?

[paul.lovejoy]

in my experience Del they offer you a trade in value and get a settlement figure on the existing loan.then if in negative equity so to speak they used to add it to the new loan or ask for a deposit to cover it. Its probably all changed now due to the current situation. in any event the first step is to ask for a settlement figure from the finance company then do the  checks to see what the current cars worth. Thats what vx finance used to do on my vans

or a personal loan pay off settlement figure sell private then buy new car

the only other way out is to check the finance agreement and normally on hp if you have paid at least half of the agreement you can just hand the car back although to be honest do not know if that will give you a black mark on your credit profile

and many congratulations garandad

[D]

Depends on what the corsa is worth. If its worth more than 8000 book price then that can be put towards the new car. If its worth less then the deficit can be added to the total price of the new car.

[Del Boy]

Thanks Paul & D, much appreciated, I shall let him know, I did think they'd do that bust wasn't 100% sure 

[Omega_Dan]

you can only hand back the car generally if you have paid half the total amount payable. Because of that the car will need to be ideally worth somewhere close to the settlement figure and he could have a new agreement on an astra and just part ex it letting the dealer sort the settlement out.

[05omegav6]

Paying up half the agreement on the Corsa, then handing it back and taking out a new agreement on the new car:- No black mark allowed for this but the finance company might move the goalposts , just be sure to use a different firm.

eg: £5000 car less £1000 deposit = £4000 finance. Thats say £110 per month over 4 years, a total of £5280. the halfway figure would be £2640, no allowance for interest rebate. If he's paid £1100 already then he'd have to pay £1540 to end the agreement and give the car back.

If he part exes it, using the eg above, lets assume the car has a trade in value of £3800. The outstanding finance would be £5280-£1100(paid so far)= £4180.
Less the interest this should clear the agreement and give say £100 towards the deposit for the new car.

Double check the maths using exact figures on his current agreement/settlement figure, take into account p/x value and new car deal as a whole and do which ever is cheapest.

HTH, Al.