mda00mjc Posted March 20, 2012 Report Share Posted March 20, 2012 Hi One of my friends has a HPI car loan through audi for about £23500 and have paid 20 instalments on a 5 year HPI loan leaving roughly £17000 to pay back. They were looking at getting a more economical car but I was unsure how this would work given the HPI loan.Would you be able to sell the car back to a dealer to pay the rest of the finance off or is this not an option as the loan is secured on the car.How would people recommend going forward?Thanks Link to comment Share on other sites More sharing options...
BestGear Posted March 20, 2012 Report Share Posted March 20, 2012 I would expect any dealer will want to see the loan cleared with the finance company before progressing on the new deal... as you know, the finance is secured on the car so its not yours to sell unless settled.If the dealer you are going to buy your new car deals with the same finance house, then it usually makes things easier.Best way out of it is to settle the loan yourself if you can, then its your car to sell - easy peasy...often done by taking a bank loan rather than finance secured on your car if you dont have ready cash.Some dealers will work in some magic... to make deal happen, but that depends on the value of what you are trading against what you move to.The other thing in the mix is the residual value of the car you have - if thats less than the outstanding loan amount, then you have a deficit to make up somehow.I guess the best thing is to speak to a dealer once you know what you want to move to and ask what they can do for you.David Link to comment Share on other sites More sharing options...
mda00mjc Posted March 20, 2012 Author Report Share Posted March 20, 2012 ThanksShe was planning to buy something cheaper which I think might be the problem she may come up against. The car is a TT 2.0 FSI 2010 S-line which is probably worth about £18000 trade in and she was looking at getting a £12000 golf. Do you think a VW dealer would offer a good price for the TT settle the finance with Audi and allow her to buy the VW.I agree that a loan would be ideal but isn't practicable due to debts etc.Mike Link to comment Share on other sites More sharing options...
Sarg Posted March 20, 2012 Report Share Posted March 20, 2012 ThanksShe was planning to buy something cheaper which I think might be the problem she may come up against. The car is a TT 2.0 FSI 2010 S-line which is probably worth about £18000 trade in and she was looking at getting a £12000 golf. Do you think a VW dealer would offer a good price for the TT settle the finance with Audi and allow her to buy the VW.I agree that a loan would be ideal but isn't practicable due to debts etc.Mikeany dealer worth their salt would arrange something for you, trading down is not that uncommon Link to comment Share on other sites More sharing options...
Pepsimax10 Posted March 21, 2012 Report Share Posted March 21, 2012 But there might be a sting in their wallet Link to comment Share on other sites More sharing options...
Colonel Posted April 3, 2012 Report Share Posted April 3, 2012 If I'm not mistaken, Audi use VW financial services, hopefully making things a little easier. Link to comment Share on other sites More sharing options...
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