changing a financed car please help?

[kate80]

bought a car nearly a year ago (ireland) thinking about changing it now (cause i saw a nice shiny one that i like!) but don't know how i will fair out with finance arrangment will i have to pay lump sum? can i use current car as deposit? any help much appreciated

[graemouse]

Chances are you are upside down on your loan. (you owe more than the car is worth). Now a days you finance for 84 months and people want to trade it in at 12 months. The math does not work. You will have to keep it for at least half the term, because no dealer will want to buy a car from you for $12000 that they can go to the auto auction and buy for $5000. Chances are you will have to put substantial down to make the deal work for the dealer.

[bails]

You'll have to pay your existing loan because at the moment the car doesn't belong to you but to the finance company. Once you have bought the car you can then use it in part exchange. However, your finance company may transfer the balance of your loan onto your new loan for the new car.