Car Finance. Asking on behalf a friend had bought a car 6months ago on finance for 12000 he has since paid about 5000 his girlfr

Asking on behalf. A friend had bought a car 6months ago on finance for $12,000. He has since paid about $5000. His Girlfriend is pregnant and he wants a more suitable car. There is a perfect car for $4000 at the same dealer he got the car from. Is there anyway he can trade in his current car for the $4000 car & get rid of what was owing on the rest of the loan! If that makes sense >.<

Thanks =)

Your friend would probably find that a dealer would only probably only give him around 7k as a trade in leaving him with no debt and no car.He has done very well to pay 5k in 6 months,I would carry on with the loan and pay it off,maybe a bit slower if money is a bit tight now he is going to be a Dad.What sort of car is it,as long as its not a two seater he will get by with his current car.He may get more if sold privately maybe 9k which might leave 2k to get another car without re financing.

Thanks for your reply. Its a WRX Sti. Its goes through gas like crazy. He can afford the repayments fine but its still got 18months left (2year loan). Do you think he would be able to sell that car for say $9000 and then just pay the rest of the loan off through the finance company! He would prob just get a smaller car with cash after that. Are you able to sell your car still with money owing, but with the intentions of using that money to pay it off straight away! Thanks

He would have to talk to the finance company about it as some may even charge a early termination fee and then hope that he can get 9k for it privatly but by the time he pays the 7k still owing there may only be 2k left if he is lucky.Might pay to keep it even if it does use the gas.He may even get less at the end of the day,I would keep it for a longer term get some use out of it before selling.If he can pay the remainder of the loan quickly he may save on the interest costs.It would be a shame to back out of it now as he has done so well to pay off the loan quickly so far.
All depending on your situation it may work but he would have to be prepared to by a really cheap car with the cash that might be left over,and if he can save like he was when he was paying off the loan in no time he will be able to purchase a good car for cash.Hopefully some other TM members can give their opinion too. Good luck.
Unfortunally getting finance on deprieciating items can be expensive.

Thanks again for your reply =) He loves his car but now having a bigger responsibility, he's putting everything aside to make way for the baby. Would a debt consolidation loan help! As he has an overdraft & credit card is up there abit. The calculators show he will actually be paying less a week than his car finance loan. Would that make it easier to sell his car! As then nothing would be owing on it. Hmm first will have to talk to the car dealer to see what he can do. Thanks heaps for your advice =D

if he's paid $5000 in six months paying the rest within nine months should be easy. Then, when she drops he can sell or trade with no debt.

gem finance buddy rg them and talk to them be all good