Anyone know how changing cars when on finance works?

[Av4nt]

to keep this simple now....

So my car is financed through blackhorse.

I am looking at a B7 S4 and am wondering what the procedure is for switching cars.
Would the company im looking at getting the car with (non dealer) have to buy my car and then pay off the outstanding finance on it for me to then finance the new S4 through them? Does it work like this?

Or am I now obliged to see out the contract before getting a new car?

 

[jase1]

No. The new dealer will ask you to get a settlement quotation from Blackhorse. They will then work out a new deal for you with them settling your current agreement. You must make sure it is done though. It is your responsibility to make sure the dealer does this. Ask them how they settle? Is it by cheque or bank transfer. When done get acknowledgement from Blackhorse this has been paid. If the new dealer is a Blackhorse dealer already then it is more simple, as your current agreement is settled at the same time.

 

[Av4nt]

So if I find a blackhorse dealer with an S4 in stock, they would just effectively refinance it for me behind the scenes almost just switching cars through the dealer? Sorry im so confused lol

 

[jojo]

So if I find a blackhorse dealer with an S4 in stock, they would just effectively refinance it for me behind the scenes almost just switching cars through the dealer? Sorry im so confused lol

Bear in mind that your current car's value would be valued at trade if you make this switch with the same company, but yes, if you source an S4 through blackhorse, then they will deal with the finance settlement, and you would have to create a new finance agreement from scratch.

 

[jonathanfenton]

Or get a settlement figure and sell privately then buy your new car... Always works out better for you as trade prices you loose a few £k

 

[s11pyk1234]

You don't even need to re finance through black horse. Any dealer can settle your black horse agreement. Depending on how much deposit you put down and the length of the agreement you are in will dictate whether you're in equity or not.
If you are past half way in your current agreement and still in negative equity they you can consider your right to voluntarily terminate your agreement. In doing this you can effectively hand the car back to the finance company, providing it's in good condition you'll have no issues. The only negative is that it does show your credit profile that you've terminated an agreement. This isn't necessarily a bad thing but if you don't "auto accept" on a new agreement an underwriter will look at your credit profile and see that you have previously terminated which he could take a dim view of.
Realistically these days for a borrow under 10000 you want a flat rate of below 6% and if over 10k you should be looking under 3%. I suppose that depends on the dealership you're in. An audi main dealer should easily be able to offer you 2 or 3 flat.