Do you have a car loan or own outright?

[MissEm]

I'd say that he had a personal loan for this, as opposed to a car loan. We wanted to roll over the loan from one car to the other, and we were told by both the bank and the car yard that it's illegal, because the car is the security. If you sell a car that has money owing on it, then the bank can't claim the car if the loan is defaulted on. We had to pay out one loan, then sell the car, then get the loan for the second car. So we still rolled it over as such - the amount didn't change, we just had to pay one out.

Yes it was a personal loan, is that illegal? Interesting - we were confused as to why he did it that way.

[briggsy's girl]

personal loans are usually unsecured, and attract different interest rates. you can sell anything you buy with a personal loan - but you still have to pay it!

ETA - quite often bank loans/personal loans will allow more money to be loaned out - which can mean a more exxy car purchase
also, with a personal loan, you don't need a deposit. when i purchased my first car on "credit" at 21, i went through the car finance. traded in my first car (purchased outright at 18) and went to both the bank and the car yard to check out how much i could borrow. i got a better deal through the car yard as i had the other car to trade PLUS a 2500 deposit. the bank didn't look at that - just that i had no real credit history so they offered much less...