Car Credit with Negative Equity

Until recently, negative equity wasn’t a concern for car owners, however the rise in the popularity of financing packages has meant that more recently negative equity has become an issue for motorists.

 

What to do if you are in negative equity with your finance

  • You could opt to do nothing and simply keep making your repayments, as long as they are affordable that is. 
  • You could also choose to sell or trade in your car and then make up the difference out of your own pocket.
  • You could choose to trade your current car in for a cheaper model and take out negative equity finance to make affording the outstanding loan and new payments more affordable. 
  • You could also apply for a voluntary termination - this is only an option if at least half of the total amount payable.