Talk to me about part exchange

[wyetonne]

We currently have 2 cars on finance but due to our circumstances changing, we no longer need 2 cars as one is only being paid for to sit outside without ever being used anymore. We therefore decided we would like to get 1 bigger family car instead of our 2 cars. Can anyone advise whether it is possible to exchange both of our cars for one bigger family car given that the new car is more than the negative equity on both cars? If so, can anyone tell me what part exchange normally involves and what we can expect? Would we need to get anything done in terms of service/MOT(MOT not due until January), etc.? Thanks all

It’s absolutely possible to PX two cars for one. It’ll depend on what kind of finance you have on your existing cars and you also say they are both in negative equity - that could make things more difficult.

If by any chance either or both are on HP or PCP and you happen to have paid more than 50% of the total outstanding at the beginning of the agreement then voluntary termination might be worth looking at if you’re in negative equity.

Hi @Elai1978, thank you for replying. Okay, so both cars are PCP for 5 years and so far we've paid off 19 months out of 60 which, if I'm working this out correctly, is about 31% of the finance to date. We've just worked out that both of our settlement figures combined are about £12,200 while the current value of both cars combined is about £9,000. The car we are looking to get is about £17,800 plus interest, etc. Do you think it could work?Thanks again

The problem with PCP is that the 50% mark is reached quite close to the end due to the balloon payment.

Where you stand now you need to find a finance company who is prepared to roll in the negative equity which used to be fairly easy but I’m not sure in the current climate. The only way may be if you have the £3k to settle the shortfall.

Have you requested resettlement figures from your finance providers? You might find the figure is less than you think as interest will be taken off due to early repayment.

Are they offering early settlement?

You will get an interest rebate if you settle them early so the outstanding amount may be slightly less than your estimate.

Get in touch with your finance company for a settlement figure. Most have online portals so you should be able to get one without calling in