Negative equity on car finance

Redhill67

Hi all

I was hoping that some of you might shed some light or have any ideas as what I can do about my car finance.

Last May I took out a finance agreement with Audi finance on a used Audi.
The future looking fine at the time.
But now I find my business is in difficulty and the car repayments are becoming a problem.
The settlement figure is more than the car is worth.
which leaves it in negative equity.
I have looked at getting a loan and paying it off over the same amount of time (4 years) but even though the rates are somewhat cheaper that the finance agreement the repayments are roughly the same.
I seem to be in a Catch 22 situation.
I am happy to go for cheaper monthly repayments and get a cheaper car, but there is no room for movement as I wouldn't have enough for a deposit even if I could find someone to pay over the odds for the car.

Any ideas of what I can do or what next steps might be?
Cheers

bigjl

You can negotiate with your finance company about a possible increase to the term of the loan, but this would mean paying more interest, but preferable to not being able to pay for it.

You are not the first and won't be the last to have a car in negative equity.

Don't settle with another loan, as you will be paying more interest, best to do as I suggested or try to economise in some ither way.

Tinks74

May be worth reading throught the contract to see if you have the option of handing the car back if you have made a set percentage/value of the repayments. I have excercised that clause in a car finance agreement before now.

It isn't always there as a clause but if it is it may help you a little, only you would know though.