About a year ago I purchased a second hand?car with finance from a company called Moneybarn.?Moneybarn specialise in people like myself in that they will?lend to?people with a bad credit history and?I have bad credit.?They were one of only a few companies that were willing to lend to me.
After a year of having my car and making my repayments, I was wondering if I could change my current car on finance and get another car. My current car a Vauxhall Corsa?uses a lot of petrol in comparison to my old Ford Focus. I only got rid of the Focus because of the repair bills and insurance costs. This was quite possibly the worst decision I could have made and was at the least shortsighted.
Getting a Settlement Figure
The first thing I did was to contact the finance company Moneybarn?and ask for a settlement figure. This settlement figure is how much I would need to pay back to Moneybarn?in order to pay off the outstanding finance. I received this figure and armed with this information I could proceed onto the next step.
Finding out how much I would get for Part Exchange
The next step was to find out how much I would get if I part exchanged my current car. I was hoping that my car would be worth at least the settlement amount and then some more.
I received the part exchange offer amount and it worked out that I would be left with ?50 after paying off the car. However because I have bad credit my total payments for the year were ?2576.40 plus my initial deposit which meant I had already paid nearly ?3600. Once I worked that out I realised that it would be a big mistake to change my car and throw away all that money. Instead I will stick with the car until it is paid off.
However if you are wanting to change your car on?finance you need to: -
1. Get a settlement figure from your current finance provider.
2. Find out how much your existing car is worth as a part exchange.
3. Find a new car and the dealer will sort out the new finance and paying off the existing finance.
That is all there is to it.
Source: http://digitaldumpingground.com/change-car-under-finance-with-bad-credit/
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