We often hear about drivers who are well into a car finance plan for a particular vehicle, only to express interest in switching to another car. As a result, there have been questions as to whether this can legally be done. The answer is “yes”: as we will explain, motorists can indeed switch their car finance from one vehicle to another.
It’s a relatively common occurrence for drivers to be a significant period of time into their plan, having used their car and gotten a lot out of it, but for their attention to be diverted towards another vehicle that may be cheaper, less utilised or simply sporting other highly-appealing features. It is a decision that you should carefully think about, because it will take some time to have the plan altered to suit this change, and though you would not be prevented from swapping again further down the line, the finance company will want to see that you are capable of completing all payments on any updated deal.
All you would have to do, once you have identified the car and are 100% sure that you wish to swap finance plans from one vehicle to another, is to contact the finance company in question with your proposal. From there, they will check that everything has run smoothly in your existing deal, and they will identify the main differences to initiate this new plan, namely the difference in cost between what you still owe and what a new vehicle would provide (though lenders can help you bridge this gap). It also does not matter how far into a finance plan you are, though it is only common sense that if you only have a month or so remaining, it may be more cost-effective to simply let that deal expire before moving on to your next motor.
We should point out that you would effectively be transferring from one payment plan to another, as opposed to simply leaving an existing plan altogether. It’s no different to changing your mobile phone plan once an upgrade becomes available; you are not cancelling your payment plan altogether, but instead you are switching to a slightly modified finance deal. Of course, all of the associated terms and conditions would need to be agreed upon by everybody involved, but it’s important to note the difference between swapping a finance plan and trying to exit such a deal altogether.
These are the main points, then, to consider when thinking about swapping a finance plan from one vehicle to another. You can learn more about us, and why we’re the UK’s best car finance company, by heading to our about us page.
As part of our services we deliver the car to your premises of choice within the UK. Lately we have delivered cars in most major towns including the Southern cities & midlands: (London, Birmingham, Leicester), Northern cities (Manchester, Liverpool, Sheffield, Leeds, Newcastle), and Scottish cities (Edinburgh, Glasgow).