Can You Swap Your Car During a Finance Agreement?
Yes, you can swap your car during a car finance agreement. Because the length of a finance contract can last between 12 months and 7 years, it’s understandable for circumstances to change. The car you’re making payments on may no longer suit your needs, so it makes sense to exchange it for a more appropriate vehicle.
How to check if a car has finance?
To check if a car has any outstanding finance you can check its history using an HPI checker, which can be done online.
It’s always best to check before buying as you could potentially lose the vehicle once you’ve bought it, as the lender still has ownership until the outstanding debt is settled.
How can I change my car during a finance contract?
Voluntary termination
One of the ways that you can change your car during a finance contract is by terminating the contract when you’ve paid off at least half of the total amount to the lender. This doesn’t mean that you have to be halfway through your finance contract to be eligible for voluntary termination.
To qualify for voluntary termination, you’ll need to make sure that:
That any payments are brought up to date
You return the car in a reasonably good condition
You let the lender know that you wish to terminate the finance agreement voluntarily
Get a finance settlement from the lender
To get a finance settlement, you’ll need to contact the lender, who will be able to tell you the remaining value you still owe, plus interest.
Once you’ve received the finance settlement, you’ll need to have it valued, which you can do so by entering the reg number into our website.
After you’ve received the valuation, you’ll need to subtract the finance settlement from the car’s valuation to give you the equity amount for your car.
If the equity amount is positive, then you can use that amount as a deposit toward your next car. But if the amount is negative, you’ll be required to pay that value on top of the new car’s price.
Take note of the Direct Debit payments as they will reduce as the finance settlement is paid off.
Sell the car
With this option, you’ll need to discuss with the lender who will allow you to sell the car, as it’s unlikely that you'll be able to sell a financed car privately.
You’ll most likely be able to sell the vehicle to car-buying websites or dealerships like Motor City Plymouth, which will work with the lender to settle outstanding finance.
Alternatively, you could look to part exchange the car instead of selling it and use the remaining value to get a better deal on your next car or as a finance deposit.
How can Motor City Plymouth help?
At Motor City Plymouth, we can help you finance your next car in Plymouth and settle any outstanding finance payments. Be sure to check our finance glossary for definitions of different finance terms, and you can also contact us for more information about the cars and finance services we provide.