Is it possible to change my car if it is on finance
admin September 15, 2021

For varied reasons, we plan to change our car. It can be anything, we may want to buy a new car in the market, or we may need to buy a cheaper car for budget issues. Whatever is the reason, the problem is that most of us buy a car in finance. Many people want an exchange as they want a cheaper finance deal.

Until we do not pay off car finance, we are confused about whether we can exchange it or not.  But there is a question to every answer. This one also is not impossible. There are ways that you can work on getting a new car and change the old one without much stress. After all, the finance industry provides versatile financial products that can always help you.

You need to work systematically without any haste

Yes, that is important. In place of stress and mess on how you can exchange your car, you need to work with patience. The solutions are there. It important is to check their applicability in your case. Also, a customization facility is always there to help the buyers and borrowers.


Yes, that is true. It is not impossible to change the car while on finance. But conditions apply. Everything is important about your current financial circumstances, repayment history with the previous finance company, and credit score.

The credit score is also important, as you already know. However, nowadays, the availability of poor credit options makes things easier. You have a variety of options for the car exchange on the funding part. From car loans to other finance alternatives such as personal contract purchase and hire purchase etc., are there.

Sell your car

In most cases, people want to get rid of things completely. Selling a car means one can buy a new car and also one will get a new finance deal. You know that this is the easiest thing to do. Sell your car and look for the other deal and the car. You have many options in this case. Wait for some months and save more for deposit thing time. Besides this, find a cheaper car finance deal this time. Both are good if you can get a good value in exchange.

Normally, this option is more useful in the case of a new car because, in that case, you have more chances to get a good resale value. However, some factors affect a lot. An electric car has a low resale value because its efficiency reduces thoroughly. Most people choose this method because they know that the transfer of a car loan can be a lingering process. However, with FinTech, we have faster and flexible finance options.

Pay off to the current lender

This is again a simpler option. However, for this, you need to have ample money to pay off the funds regularly. In most cases, people have intentions to pay off their car finance, but they do not have the funds to do so. After all, it is not about paying off the little quick loans in Ireland with no guarantor that have a small installment. It is something big that leaves an impact on your monthly budget.

If you have any chance to pay off the funds of the current finance option, you should go for it. This leaves a good impact on your credit score performance as well. This is because the new finance lender will see that you paid off the previous finance company completely.  

Give your car on rent, pay off the loan faster, and get a new one

Yes, this can also be an option, but it is applicable only for those who do not use their car frequently. Many people daily travel through public transport such as metro from home to office, office to home. Busy life leaves less time to travel from your own car. In that situation, you only pay installments, and that sounds like a big burden.

When you rent out your car, it brings a regular earning. It means you can pay off the funds faster and can also earn some extra money. Why not save those extra pennies to create a considerable deposit for the next coming finance option? It should not be a problem for you if there are good cab services in your area. This can give a big financial help to you and work on a promising and affordable new car finance option. Car finance is normally considered a bad debt. This can be a good method to turn bad debt into good debt.


As you can see from the above options, it is not impossible to change your car midway through your finance journey. Most people get panic whenever they think about it. But we are living in the era of options. The only time that is consumed is in the formalities. For example – if you want to consider a new finance deal, you need to talk to the current and the future lender.

In a few days, you can easily exchange your car while on a current finance option. Next time, when you plan to change your car, consider the options mentioned earlier. To be rational, you do not need to take any stress. Just tell your issues to the finance company, and they are smart enough to sort out the issues. You just relax and plan for the new deal and car.