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Can I change my car if I have outstanding finance?

It’s common for customers to take out finance on a car for up to 5 years, however, some people choose to change the car before the term is finished. Maybe there’s a new member to the family. Or you’ve changed jobs and need a more economical option for a longer commute. It’s often life changes like these that dictate the need to change your car. But how do you do this when you’re still paying the finance on your current vehicle?

If you decide that you need, or want, to change your car with outstanding finance, the good news is Zuto may be able to help. The first thing you should do is contact your Lender and ask for a settlement figure; this is the amount the lender is prepared to accept from you in order to end your current agreement.

It’s worth noting, if you apply for further finance on a new car while you still have outstanding finance elsewhere, potential new lenders will take the current unpaid finance into consideration, when determining your affordability for new finance. This may result in getting higher interest rates on the new borrowing or even a refusal.

If you’re looking to change your current vehicle and what some help and advice on what you need to do, why not talk to one of Zutos car buying experts. Give us a call on 01625 619944.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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