Flexible payments, reduced costs, and more choices – navigate Negative Equity car finance with confidence!
Do you currently owe more on your car finance agreement than your vehicle is actually worth? If so, you could be in negative equity. For most buyers, that’s not necessarily a problem—for those who want to switch cars, however, it could present a challenge.
Among other things, depreciation, higher than expected interest rates, or paying a minimal deposit could be contributing factors to entering into negative equity.
But it needn’t be something standing in your way. Even with negative equity, it’s still possible to change your current car and get a better deal on your car finance!
If done right, you could trade in a car with negative equity, consolidate the remaining balance into a new finance agreement, and even shrink your financial gap over time—Negative Equity car finance gives you a chance, even when the numbers are working against you.
Negative equity can sound scary, but it doesn’t have to be. With experts like those at CarFinanceToday behind you, you may be able to reduce the financial strain of negative equity and even take out a new car loan!
If you’re struggling with negative equity, you have a few options:
f you’re in a financial position to and can afford to repay the negative equity (what you owe that’s more than the car’s value), you may be able to simply pay the loan balance. There are essentially two ways to do this—but be aware that both could mean you’ll pay more in interest. Either:
Depending on your agreement with your finance provider, you may be able to trade your car in for a cheaper model. This could go some way towards offsetting your negative equity—but might not eliminate it entirely!
If you want to swap your current car for a new model, Negative Equity car finance could be for you. At CarFinanceToday, we work with trusted lenders in the Negative Equity finance space. They may be able to offer you a new finance agreement which rolls your current negative equity into a new deal. Combine your loans into a single monthly payment and enjoy a new car!
If you’re eligible, Negative Equity car finance presents an opportunity to continue enjoying the benefits of car finance—fixed monthly payments, flexible options, newer car models—without having to immediately pay off your vehicle.
We’ll find a finance company who’s ready to roll your current car loan into a brand new agreement on a new vehicle. A Personal Account Manager will sit down with you to discuss how this will affect your monthly payments and your credit standing.
By paying off your old loan balance while simultaneously paying your monthly instalments on your new loan, you may be able to reduce your negative equity (even though you’re taking out another loan).
This lets you:
If you currently have car finance, you’ve probably heard lots of myths about Negative Equity car finance. The truth is, many of these aren’t accurate, and Negative Equity deals can actually be a smart, cost-effective route out of negative equity without giving up on car ownership. Some of these myths include:
1. “I can’t get a new car if I have negative equity.”
Not necessarily. Refinancing—or a Negative Equity agreement—means you can exchange your current vehicle for a new car and roll your negative equity value into the new payments. Keep on driving with a new car finance agreement!
2. “Negative equity financing will always put me in more debt.”
Negative equity financing means taking out another loan, true. But that doesn’t mean you’ll end up with more debt in the long run. Depending on your financial situation, Negative Equity financing may allow you to eliminate your debt over time.
3. “You need perfect credit to get approved for negative equity financing.”
Many people believe that if they have a less-than-perfect credit score, they won’t qualify for negative equity finance. In reality, while a good credit score can help secure better terms, many lenders also consider factors like income, job stability, and overall financial situation. Even those with bad credit may still find financing options tailored to their circumstances!
Figuring out your monthly payments is crucial, especially for those considering Negative Equity Financing. Use our free online car finance calculator below to get the clarity you need!
Head of Content and Conversion
We make it quick and easy to apply for all types of car finance agreements, including Negative Equity financing. All you’ll need to apply online is a few documents—we’ll do the rest. Here’s how it works, step by step:
When applying for negative equity car finance, we seek an approval from one of the many trusted lenders within our network. Even in cases of financial disadvantage, we find a method of creating a solution especially for you.
At least 18 years old, with at least three years’ address history in the UK
We perform a soft credit check in order to find an approval in principle, which does not affect your credit score.
While a good credit score will of course go in your favour, some lenders will assess other aspects, such as your income, job security, and debt-to-income ratio to determine whether they can provide you with a new deal that can take over your outstanding negative equity.
Negative equity financing has never been easier and more hassle-free than it is here at Car Finance Today.
We understand that negative equity can feel rather frustrating. However, that doesn’t have to be the case. We don’t want anything to stand in the way of driving away in a car - whether you’re upgrading or consolidating. And we’ll support you every step of the way.
From family-friendly vehicles to stylish commuter models, our lenders work tirelessly to track down the perfect deal for you. Even if your negative equity makes your case more complex, rest assured we will work hard on your behalf to get the right agreement that will fit your requirements and your budget.
Your dedicated account manager will support you through every step of the process. We'll make sure that everything is explained clearly and concisely - from the discussion of your options to the signing of your new agreement, we'll make sure everything is hassle-free.
You can roll the outstanding amount into a new deal providing your lender accepts it as reasonable.
Yes, there are refinancing options available to help you manage your payments and consolidate debt.
A good credit score helps but we work hard to provide for our customers from all types of financial backgrounds.
You can, although you may be faced with paying the outstanding amount upfront or adding it onto a new finance deal.
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