I hope someone can help me make a decision on this. Opinions more than welcome!!

I made a very naive mistake and bought a lemon in Nov 06 on a 4yr hire purchase from a local independent dealership using this company to finance it.

I asked Welcome Finance today and I can either pay around £2500 and settle this agreement in Nov 08 or I can PX for a newer car from their "showroom".

If I PX, the new agreement if true would have an APR less that half what I was paying before (16% vs 37%).

I would get £1250 for the old car but I expect they'll somehow try and lower this figure before I sign.

They said monthly payments would be £200. They wanted more than this at first and I will try get it lower still if I ever go ahead with this. I've been paying £130 per month on the previous agreement.

Have any of you gone this route with this company? What happened? I know they're dodgy as hell but I'm very cautious/paranoid these days and I won't sign anything unless I'm completely satisfied.