Mark1984_SRI
Member
Registered: 7th Feb 06
Location: Preston
User status: Offline
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Okay, i've had my car a year paid £2,500 off it. Now say my settlement is £9000.
I pop down to a garage, they say we'll give you £7,500 for it. At this point i still owe £1,500 on my finance. Now say i see a car for £6,000 and want it. What do i work out paying and how? Do i pay the finance on the £6,000 plus the £1,500??? my head hurts  any help appreciated 
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corsaaa_16v
Member
Registered: 8th Feb 06
User status: Offline
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Yes the £1500 difference between your settlement and the cars value is known as negative equity.
However, some garages will be able to work the figures, so in effect you will financing £7500 (+interest) on a car worth £6000
not a good idea unless you really cant afford your current payments or the car your getting for £6000 is worth more than the £6000 it is up for
if not, you will just be in a even worse position again when you want to change next time unless you keep the vehicle for the full finance period
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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car finance is evil.
find out themaximum the garage will giv you,a dn leave biggest deposit possible, the less you have to finance the better you'll be in the long run
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