Finance deals are very appealing to modern motorists. Cars aren’t cheap, even when purchased nearly new or used. Sadly, it’s unlikely that you’ll be able to purchase a vehicle outright without coming into a small windfall. Car finance options give you the flexibility to pay for a good motor without accruing a mountain of debt.

However, caveats do apply. For example, you don’t own the car until you’ve paid off what you owe. Therefore, you may wonder, “can I change my car while on finance?”. It’s a savvy question and one you should know the answer to before you commit to a multi-year contract.

Can you swap a car on finance?

The short answer is no, not without settling up with the lender. As the finance payments haven’t been settled, you don’t actually own the car outright just yet. As a result, you need to clear them before you can begin to think about swapping vehicles.

To do that, you’ll need to contact the lender to obtain a car finance settlement figure. This figure is essentially the amount you must pay to end the contract. Once that’s finalised, you can look at the options open to you, three of which are outlined underneath.

What can you do?

There are three methods available to drivers who have a car on finance and want to swap to another deal. They are – pay up, sell your vehicle, or part-exchange with a dealer.

Paying up

Settling up is probably the simplest method if you have the necessary funds. By contacting your lender and clearing the balance, there’s no reason to mess around listing your vehicle and dealing with the admin. The same goes for part-exchanging, too. Of course, the figure could be high depending on how far through your deal you are and how much you have already paid.

Selling your car

Selling the car means you can use the cash to pay off your existing deal. You should receive the current market value of the car, making it easier to make as much profit out of the sale as possible. One issue to keep in mind is the buyer. Some lenders won’t let you sell privately, but they do allow sales to dealerships. In any case, you need to pay off the existing finance agreement first to get your name on the V5.


Although it sounds like you’re doing a swap, the reality is that you still need the V5. As a result, it’s impossible to part-ex your existing vehicle without the finance settlement figure. Essentially, part-exchanging means you use any positive equity you have to finance your next deal.

What do I need to do?

There is a selection of essentials. Firstly, you can’t do anything without a valid V5 that’s in your name. Secondly, it’s best to get the car valued so that you understand the figure you’re looking for. Thirdly, working out the equity – positive or negative – will highlight how much you can put down as a deposit on a new PCP or HP agreement.

How we can help

As you can see, taking out car finance doesn’t mean you’re tied to one car if something better comes along. It’s just important that you go about swapping your car on finance in the right way! If you’ve got another car in mind and would like to work out your monthly payments, use our free car loan affordability calculator to do the maths! Alternatively, get in contact to discuss your options on 01246 458 810.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!