Part Exchange/Hire Purchase

Part Exchange/Hire Purchase

Author
Discussion

StrawberryBurst

Original Poster:

89 posts

62 months

Thursday 21st December 2023
quotequote all
Hi all,

Probably a silly question but this is not an avenue I've ventured into before so curious.

My current car is valued at roughly £14k give or take. It is on a HP agreement.
Early settlement just now £14,870.10. So a little bit negative equity.

Could I part exchange for a car with a price tag of £13k or so? And if so how would that work?

J1990

836 posts

60 months

Thursday 21st December 2023
quotequote all
StrawberryBurst said:
Hi all,

Probably a silly question but this is not an avenue I've ventured into before so curious.

My current car is valued at roughly £14k give or take. It is on a HP agreement.
Early settlement just now £14,870.10. So a little bit negative equity.

Could I part exchange for a car with a price tag of £13k or so? And if so how would that work?
Car's value is £14k
Outstanding finance is £14.8k
Net value of -£800

Potential new car is £13k

The finance isn't transferrable between the cars and so you will need to clear the finance in full, this can be done by paying the dealer the £800 and they clear the finance entirely with their part-exchange offer + your 'top up'.
The new £13k car would need to be financed separately - so via a personal loan, savings, PCP, HP etc.


andburg

7,677 posts

176 months

Thursday 21st December 2023
quotequote all
StrawberryBurst said:
Hi all,

Probably a silly question but this is not an avenue I've ventured into before so curious.

My current car is valued at roughly £14k give or take. It is on a HP agreement.
Early settlement just now £14,870.10. So a little bit negative equity.

Could I part exchange for a car with a price tag of £13k or so? And if so how would that work?
its possible.

Depends what ther buyer offers you.

If you PX then the dealer buys the car from the you/finance company, if he offers less than settlement you'd still owe that money and would need to pay it of at that point. If its more than the settlement the price of the vehicle you're purchasing would essentially be reduced.

StrawberryBurst

Original Poster:

89 posts

62 months

Saturday 23rd December 2023
quotequote all
Thanks guys. Makes sense.

It's likely I'll have to pay a couple hundred to settle the finance in any case.