Buying a second hand car

[Coffey]

Hey all, just looking for some advice as I've never done this before..

I am contemplating buying a new (to me) car from a dealer close to me.

The current car I own still has finance outstanding but the car should be worth more than what is outstanding.

The car I am looking to get is more expensive than what is outstanding so will have to add money/get finance on the new vehicle.

I have had a look at their website and the finance deal they are offering is a much higher APR rate than what I can get a loan at the bank for.

Is there any downsides to getting a loan at the bank and then just paying for the car and using my old car as a trade in? Will the dealership deal with my outstanding finance or is that something I need to sort out in advance?

I am pretty in the dark about all of this as my first car i just went in and got it without trading anything else in against it.

I assume this is all pretty standard though and just wondering if there is anything i need to consider or if there is any issues with using a bank loan (which i cant currently see a reason).

Any help would be greatly appreciated!!

 

[USER1999]

No idea, but hitachi finance keep offering me loans at 3.1% apr, which is pretty low.

If you have outstanding finance on your car, is it yours to sell?

 

[Coffey]

No idea, but hitachi finance keep offering me loans at 3.1% apr, which is pretty low.

If you have outstanding finance on your car, is it yours to sell?

Yes I believe it is mine to sell as long as the finance is paid off, which it will be in any case. Just depends if I have to do that or the dealership handles that. I know a friend of mine went in and changed his car and they just added the difference to his current deal. But my current deal is higher than the APR I can get from the bank, so I don't want to do that.

Yeah it seems that the rates are low at the moment, M&S bank offering 2.8% whereas the dealer is 6%

 

[Bunkermagnet]

Some dealers will do it, but the premium for it may be slightly greater than you sorting it yourself.
Things like the dealer just adding the outstandin amounts are usually when the branding/finance company is the same. You sound like youre intending to end up using different finance suppliers, so I dont imagine they would just add it in a straightforward manner.
Also dont forget what they appear top be offering, is usually a "typical rate" and not neccessarily the rate they will offer you.

 

[Coffey]

Some dealers will do it, but the premium for it may be slightly greater than you sorting it yourself.
Things like the dealer just adding the outstandin amounts are usually when the branding/finance company is the same. You sound like youre intending to end up using different finance suppliers, so I dont imagine they would just add it in a straightforward manner.
Also dont forget what they appear top be offering, is usually a "typical rate" and not neccessarily the rate they will offer you.

Awesome, thanks for the help.

I think if I go with the dealership finance then it will be same, as it is the same dealer I went purchased the car off before and on their website they have the same finance company. That makes sense though, thanks! Yeah hopefully I would be able to get a better rate as I was naive and excited and just wanted the car last time and didn't really question anything. Live and learn as they say!

 

[Golfmmad]

A Bank loan is usually a better rate than a dealers finance.
It might be worth going to the Bank and see what they offer - including paying off the existing finance.

Good luck whichever way you go. :thup:

 

[Smiffy]

Any car dealer will settle the outstanding finance on your behalf. They've got to, or they wouldn't be able to sell the car on. They will not charge a premium for doing it. If they try to, or say they "have to" they are liars and are to be avoided.
It may seem easier settling it yourself, but it will take a lot longer to sort out than the dealer doing it, which will delay you picking up your new car.

 

[Coffey]

Any car dealer will settle the outstanding finance on your behalf. They've got to, or they wouldn't be able to sell the car on. They will not charge a premium for doing it. If they try to, or say they "have to" they are liars and are to be avoided.
It may seem easier settling it yourself, but it will take a lot longer to sort out than the dealer doing it, which will delay you picking up your new car.

Thanks all.

Went down last night and they gave me a pretty good deal from what I can see. I mentioned about the bank loan and they got pretty much as close as they could. Now it is just convincing the other half that this is a good idea.. that's the tricky part!!