Upgrading your car during a finance agreement
Can I upgrade my car during my finance agreement? This is a frequently asked question amongst most individuals with a current vehicle on finance. Whether you are an existing customer at Glenside Finance or looking to see what options we have available for you, the process is simple to start. Apply here. Representative APR: 37.9% (fixed).
Upgrading your car during a finance agreement: best practice
Step One: Request your early settlement figure from your lender. If you are an existing customer with us, you can call and request this over the phone (01942 466 035) or email us info@glensidefinance.co.uk.
Step Two: You will need to find out the value of your current vehicle. You can do this online with various car buying services such as We Buy Any Car or visit any local dealerships / garages.
Step Three: Now you have the early settlement figure and the current value of your vehicle, you will need to work out where you stand regarding your equity. Simply subtract the settlement figure from your car valuation price. This will equal the amount of equity available in your car. If you have positive equity, great news! You can use this how you wish, it could be towards the new agreement or insurance etc. If you happen to have negative equity the difference will need to be covered with a deposit or speak to the dealership and see what options they have available.
Step Four: The early settlement may include your next direct debit payment. It is a good idea to check with your finance company as each contractual payment will reduce your settlement.
Looking to proceed with upgrading your car?
If you are looking to proceed with upgrading your car. The product we have available is a Hire Purchase (HP).
Hire purchase is finance that’s secured against a product, in this case a vehicle. Once the agreement has been fully paid the vehicle will then belong to you.
Hire purchase agreement is a fixed contact to which you will make repayments of the set amount each month over the agreed term. For example, £150 per month for 3 years.
Depending on the term of the agreement your repayments may differ. The longer the term the lower the repayments, however the total amount payable will increase due the interest.
You can reduce the amount you borrow if you pay a deposit however this is not required.
Hire Purchase pros and cons
Pros:
- Simple to arrange – Quick decisions. Apply now
- Fixed monthly repayments
- Fixed interested rates
- The vehicle will belong to you at the end of the agreement, providing all the payments have been made
- Option to pay off the loan agreement early
- Deposits are not always required
- No annual mileage restrictions
Cons:
- Finance is subject to a credit and affordability review; this is not guaranteed. Please see the following blog regarding affordability checks
- If you do not make all your payments as agreed, you will not own the vehicle at the end of the agreement
- Failing to uphold the terms of your agreement could put the vehicle at risk of repossession
- Missing or late payments could affect your credit score.
If you are still unsure, please contact us to discuss all your options in full. This will allow you to make an informed decision most suitable for you.
01942 466 035
info@glensidefinance.co.uk
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Saturday – Sunday: Closed
