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I have Negative Equity on my Current Car. Can I Use the Loan to Clear The Debt?

Hi Rachel,

I have negative equity on my current car, with a car loan would i be able to clear the debt on my existing car and go pick a new car with the rest of the loan?

Asked by Baz

Hi Baz, thank you for your question.

How much are you in negative equity by? We can help people who are in as much as £1000 (approx) negative equity but that's as high as we can go if i'm honest. It really depends upon what price you're buying your next car for and how it values with the finance company. Sometimes we can secure more than the car is up for sale.

Loans from us are secured against the new car so the funds wouldn't be transferred to you personally to clear the debt and find a new car. The supplying dealer would take your current car in part exchange and settle the finance.

I take it that you are employed, have a UK driving licence and some current clean credit? If so, please make an application and once approved we provide a no obligation quote and you can get a new car from any UK dealer. We'll try and secure you as much as possible but if you could scrape together as much deposit as possible that'll help the cause. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 186 People

£
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.


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