Hi there,

The best thing to do is to actually sell the car and pay off the existing loan, before applying for another one. That’s the best thing for your credit score, at any rate, although admittedly it might not be the easiest or most convenient. If you’re trading in and buying from the same dealership, and within the same brand, then you may be able to roll your finance agreement over into a new car, so the first stop should be to the dealer and ask one of the sales team. If not, perhaps a chat with your bank manager or, if you have one, your accountant, is in order.