Trading in a car with outstanding finance

[arfur]

Folks,

Hope you can help me out here.

I have a Modified Prodrive Forester that still has about 20 months credit outstanding (8k ish) and the car is worth about 5k ish (115k miles, 3.25 years old - 57 Plate). The car was bought from Subaru with delivery miles and most of the mods were done by Subaru.

At the moment it is very sick, and keeps letting me down - I've simply had enough

I've decided that when I get it back (again) I want to trade it in for either a X3 3.0d or a A4 Avant 3.0Tdi. These are likely to be from main dealer or specialist. Probably around 57 plate with as low miles as possible (about 20k)

I've never traded a car with outstanding finance before, and the car is worth LESS than the outstanding finance.

Do I have to pay the finance off first ?
Can the dealer for the new car use the car and adjust their finance accordingly to pay back the outstanding ?

Any thoughts would be appreciated !

Cheers

Arf

[jsg612]

The dealer will have to settle your existing finance, and you pay the difference on top of your new car's price.

[v8will]

jsg612 said:

The dealer will have to settle your existing finance, and you pay the difference on top of your new car's price.

Careful with the maths, many a dealer with stitch you up on this.

What's wrong with the Subaru? Can it not be fixed properly until such time you can get the balance owed down on it?

[yoof full chav]

jsg612 said:

The dealer will have to settle your existing finance, and you pay the difference on top of your new car's price.

I went this route when i traded my 172 for the stroen, and they basically add whats left of the finance to the payments of the car you wish to trade for. The thing is though, if your forrester is modified, i guess unless they are a subaru dealers, some might not touch it

[arfur]

yoof full chav said:

I went this route when i traded my 172 for the stroen, and they basically add whats left of the finance to the payments of the car you wish to trade for. The thing is though, if your forrester is modified, i guess unless they are a subaru dealers, some might not touch it

Its running a different map and has upgraded arbs and strut brace ... It will be traded as a "prodrive" model with is a Subaru tick box (ecu, exhaust, bodykit, wheels, downpipe). I wont mention the different map. Runs about 300/300 instead of 260/300.

[arfur]

v8will said:

Careful with the maths, many a dealer with stitch you up on this.

What's wrong with the Subaru? Can it not be fixed properly until such time you can get the balance owed down on it?

I do 220 miles a day getting to work and back ... in the last 3 weeks it's left me at the side of the road 3 times. Three garages have looked at it (overheating) and have not fixed it. Its now at Subaru for what will most certainly be a wallet emptying experience. The words "engine out" have already been muttered

[arfur]

Bump for the day crowd

[Davie_GLA]

Negative equity is never a good thing. If you are dead set on doing it this way i'd get a loan to pay off the current car and buy your new one. This way you don't owe a finance company anything, and the car is yours to sell on without having to worry about this in the future.

Although, getting into what i would class as serious debt for a car is madness anyway.

[mcflurry]

Is it on HP?

If so, it may be looking at your Key Finance Docs at the halves and thirds section

i.e. depending on your payments you may be able to simply VT and hand it back.

[POORCARDEALER]

mcflurry said:

Is it on HP?

If so, it may be looking at your Key Finance Docs at the halves and thirds section

i.e. depending on your payments you may be able to simply VT and hand it back.

Might run into a problem there....to VT a car it has to be in decent condition for age and mileage....however as the car would probably go to auction anyway with that mileage.....check your finance agreement out,

[markcjd]

First option would be to VT the vehicle under the terms of your finance agreement. Provided that when the finance companies collection agent arrive it is in fair condition you should be ok.

Option 2 would be a personal loan to cover the negative equity from your own car AND the purchase price of a new car.

Option 3 is to allow the dealer to fix it. Be wary of this as it can end up costing you a fortune. Most dealers will increase the price of both your car and theirs by the same margin to cover the negative balance and then add a sum to their vehicle to cover vat. This practice is much harder in the current market as lenders are much tougher on the %age of value they will lend on cars.

Remember that if you do go for option 3 you are repaying BOTH cars so the ability to change the vehicle during your new finance agreement will we gratly reduced.