Brother wants to trade in his car, but still has finance outstanding on it.......

[misdee]

what can he do? will he have pay off all the finace on the old car? he cant really afford to change the car, but he was stung by welcome car credit. still owes around 6k on a Y reg car. i dont know anything about finance on cars.

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He won't be able to do anything, especially if it is welcome finance they probably charged him 10k for a 4k car!

I tried to swap my car (bought brand new) and couldn't do it, it works out that they give you trade price for your car then add what ever is owing in your original finance agreement onto whatever car you get iykwim.

HTH

welcome finance are wankers.

thats what i thought. he is taking the documents over to my dad to go through them with a fine tooth comb. my brother is very dyslexic and not good at this stuff, and i feel he was bullied into it. (also by his girlfriend who hates his little souped up car which he owns outright).

I agree Tiredemma...we got a loan off them 3 years ago, got 2k charged us something silly like 7.5k for it...GRRR!

ouch!

Misdee...He could ask for a settlement figure and see exactly what he still owes, but looks like he will have to do what we have to do with our loan unfortunately!...bite the bullet and just keep paying till agreement finished

i said he could apply for a loan from his bank and pay off the finance agreement. but think his credit rating is too poor for that.

we tried at xmas to do this, we've had our car 2 years, borrowed £4500 and are repaying £6000 over 4 years, we currently owe approx £3000 on the car (bit annoyed really they pay int first but still) anyhow basically as we owe more than the car's worth (ours is only worth £1500-£1800 max) we're in a neg equity situation, and the jist of it was after juggaling their money about etc we would have to borrow £10K for a car which is only worth £8000 needless to say the finace company wasn't happy at all about this fact as they obviosuly like to safeguard their investment. we've decided to wait till the end of this year then reassess again as hopefully the car should be worth approx £1000 and we'll only owe £1500. - fingers crossed! lol.

we were given the options of settlement (ie add the old loan to the new one) or pay off the olsd loan and get a new one - we couldn't afford the second option)

we also decided against welcome car finance/car craft/yes car credit as a friend had nothing but trouble from them.

Misdee...That is why companies like welcome -crappy- finance get away with it they have people by the short and curlies.

Munz...That is what happened with me, i would never buy a new car again, i was lucky (if you can call it that) i had my finance over 4 years and could just hand the car back after 2 of those years (or half the full amount of finance) so that was what i did.

It depends on whether the agreement is a hire purchase agreement or a straight loan to purchase the car. If the former, then the finance company own the car until the last payment is made. If the latter, your brother owns the car and can do what he likes with it, but still owes whatever is outstanding on the loan.

ours is a straight repayment - I should have added the extra £1500 was the intrest on the loan, according to their paperwork thou after i've made at least half the payments - ie this one just gone, I own half the car so now they can't repossess it or take it off of us unless I agree to it. not sure if that's a standard thing or not??