I have a car since 2007 on a loan from the Main Dealer, the car is now worth €10k tops and the outstanding loan is c€14k.
Q: Are there any options to trade up to a bigger car now as my new family need more space than is in the current car? Say for example an estate 2008 diesel for €16k ?
Yes, there are options. You will have to clear the outstanding debt on the current car, but you can consolidate that and the cost of the new car into a single loan. If you're using the same dealer, they can probably handle all the paper work for you, but you may not get the best deal financially.
Say the dealer offers you a 10k trade-in against the 16k car. That will add 6k to your loan amount. So the outstanding loan amount becomes 20k.
Leo