# Selling car with outstanding finance?



## adf27 (Mar 14, 2012)

Hi all,
I'm thinking of trading my car in for one which is slightly cheaper to run, but it still has a decent chunk of finance outstanding with a third party lender. Does anyone know if a garage would take a car part ex with finance still on it Alteratively, would a bank lend me the money to settle with the finance company, that I could then repay immediately?
Thanks!


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## Kerr (Mar 27, 2012)

It's normal for people to trade in cars with finance outstanding. The dealer will be very used to dealing with that and will settle the debt.


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## adf27 (Mar 14, 2012)

Kerr said:


> It's normal for people to trade in cars with finance outstanding. The dealer will be very used to dealing with that and will settle the debt.


Thanks, sounds positive. Do you think I would get a low offer because of the finance?


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## Kerr (Mar 27, 2012)

adf27 said:


> Thanks, sounds positive. Do you think I would get a low offer because of the finance?


It shouldn't make any difference.

I'd do some investigation to make sure you get a fair trade in price for your car and pay the correct price for the car you are buying.

Dealers will try to make as much money as they can. They do usually have a good margin to play with.


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## Dblaik (Apr 1, 2015)

It essentially depends on what the "trade" price of your vehicle is against your settlement figure. In some cases people could be upside down on their finance- basically owing more in finance than what it's worth. 
So if you are going to buy a cheap car and don't need any finance, if your cars trade price is your settlement figure plus the price of your new vehicle you should be ok. 
If I was in your position and owed more on the car than it's worth I would keep it for as long as I could. 
I hope this is of some help.


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## Paul7189 (Nov 11, 2015)

If you have paid 50% of the value of the car on finance you can give it back but get nothing in return.


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## macca666 (Mar 30, 2010)

As others have said not a problem for a garage it would only cause issues if you were selling privately.

The garage should contact the finance company and get a final figure which you can do as well to give you an exact cost as it's not just as simple as multiplying however many payments you've left plus any final payment.

When the garage has the repayment figure they'll take that off what they will be offering as a trade in and you'll have that amount towards your new car.

As above you need to watch you're not in negative equity where your repayment value is more than the cars worth meaning you'll have to put extra cash down just to break even. Apparently some of the Mercedes PCP deals were like this due to the low monthly payments. I know a couple of folk who looked at changing after 2 years and one was about 6 grand in negative equity :doublesho


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## Paul.D (Jun 26, 2013)

macca666 said:


> Apparently some of the Mercedes PCP deals were like this due to the low monthly payments. I know a couple of folk who looked at changing after 2 years and one was about 6 grand in negative equity :doublesho


They still are.
Great way of making the customer stay in the car for the length of the contract as they cant afford to get out of it.

I have a Merc on Merc PCP and was thinking of getting out of it and had a chat with the sales guy in the showroom to ask if any of them come out with any equity to be told most are upside down when they come in and most just hand them back and start afresh.


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