Car Finance

Usually the company you are with may offer you a new deal on another car as you'll have so much equity in the one you've been paying for. Otherwise it's recommended to get a loan if you want to buy out right 🤗

For example, we are directly with Renault, and we had a Renault Clio with them, then near the end of our agreement we went in to see if there's another deal which would use the equity from our Clio (based on what it's currently worth on the market) this would then cover the deposit for the next car

@Tanya Apparently we don’t have equity on our car. It’s a 2020 plate. If we did then it would solve our problems.

Ahh yeah it's a pain getting the newer cars cos the drop in price 🥲 you can try other places see if they are willing pay more for your car and give you a deal on a used car xxx

@Tanya Did you get yours brand new or a few years old?

Always just a little older, so we know the drop in price has already happened. Usually with around 10-20k miles xxx

If you don't have much equity in car I would recommend just looking for a cheaper used car deal, some can be deposit free xx

New cars are such a trap when on finance sadly

I was £5k in negative equity with mine, had to carry it over onto another car. Instead of a pcp I took out a hp on a lower priced car (21 reg in 2024) but cause I got a Kia Sportage I have 4 years warranty with it. My problem was I had an electric car and they’ve dropped in price dramatically

@Tanya Yes, a trap indeed. How old do you go?

@Jess That’s good to know. Did carrying it over increase your monthly cost?

Yes by the 5k I had to carry over. So just look at what you’d originally have taken out for a car, let’s say last year you paid £400 for a £20k car, this time you’ll pay the similar for a £16k car etc depending on how much negative equity you have and the interest

I'd get out of finance. Get a 10k loan for a used car instead. My cars have always been under £5k (10-15yrs old) and the repairs are way cheaper than you'd spend on monthly finance payments so you're still saving and you own the car outright quicker.