Car finance advice please- getting rid of neg equity??

Rachelbr21

Basically I have a 2 seater which I bought brand new in march. I'm now nearly 6 months pregnant and plan to change it at some point this year when I've paid a bit more off as obviously I want something with 4 seats.
Say in May I want to swap the car and a dealer will give me 15 grand for my car but I owe 17-18 grand on it if I want to swap the finance to a car thats worth around 7 -8 grand would that cover the negative equity that is owed does anybody know? And will they let me do this? Thank you:)

forgotmyname

The only way to get rid of the negative equity is pay it off.

Bought brand new is worse. Possibly instantly worth 20% less than you paid.

If you buy a £7000 car you will need £9000 worth of finance to cover the £2000 you owe on the current car.

Then you have the issue of £9000 finance on a car worth a LOT less.

Some dealers will inflate the price of the car your buying, Or put down a lot less for your part ex.

Either way your paying interest on the negative balance.

mark5

My wife bought a mini just before getting pregnant about 6 years back. It didn't make financial sense to sell it and lose so much on it. Luckily I had a Golf which was better suited to her needs so we just shared the 2 cars, who ever had my daughter (usually my wife) used the Golf and the other took the Mini.

Is there a more financially practical solution like this you could try?

Hintza

You have to maximise the value of the 2 seater, so wait a bit yet until the weather picks up and the sun is shining. Then get a settlement figure and try and sell it privately.

Otherwise as forgetmyname suggests you will be paying for it one way or another so you just need to minimise your loss.

motorguy

Rachelbr21 wrote: »

Basically I have a 2 seater which I bought brand new in march. I'm now nearly 6 months pregnant and plan to change it at some point this year when I've paid a bit more off as obviously I want something with 4 seats.
Say in May I want to swap the car and a dealer will give me 15 grand for my car but I owe 17-18 grand on it if I want to swap the finance to a car thats worth around 7 -8 grand would that cover the negative equity that is owed does anybody know? And will they let me do this? Thank you:)

Out of curiosity, do you really need a four seater?

Child seat can surely go on passenger seat?

My wife ran an mr2 when our son was wee. No real issues.

It might be better thinking laterally than taking a several thousand pound bath?

GwylimT

motorguy wrote: »

Out of curiosity, do you really need a four seater?

Child seat can surely go on passenger seat?

My wife ran an mr2 when our son was wee. No real issues.

It might be better thinking laterally than taking a several thousand pound bath?

Rear facing car seats can only go in the front passenger seat when the airbag is removed, some insurance policies aren't happy about that.

Captain_Flack.

GwylimT wrote: »

Rear facing car seats can only go in the front passenger seat when the airbag is removed, some insurance policies aren't happy about that.

Isn't it turned off ?

GwylimT

Captain_Flack. wrote: »

Isn't it turned off ?

An airbag that is turned off or disabled can still go off during an accident, you need to remove them when using a rear facing seat, it used to just be the type that didn't have a roll bar handle, but now its all rear facers.

Captain_Flack.

GwylimT wrote: »

An airbag that is turned off or disabled can still go off during an accident, you need to remove them when using a rear facing seat, it used to just be the type that didn't have a roll bar handle, but now its all rear facers.

Fitting a child car seat
You must:

only use a child car seat with a seat belt that has a diagonal strap - unless it’s specifically designed for use with a lap seat belt
deactivate any front airbags before fitting a rear-facing baby seat in a front seat
not fit a child car seat in side-facing seats

From

https://www.gov.uk/child-car-seats-the-rules

People talk about active and turning off not removing.

Like you I wouldn't trust them turned off but they don't have to be removed.

motorguy

GwylimT wrote: »

Rear facing car seats can only go in the front passenger seat when the airbag is removed, some insurance policies aren't happy about that.

As has been said already, thats not "the law".

I guess we dont know enough about the O/P's situation but i would be fully exploring other options before taking a large financial bath on a nearly new convertible.

Building_Surveyor

I don't know any car seats or car manuals that advises you to completely remove an airbag when fitting a rear facing seat... Or am I mistaken?

Deactivate yes, completely remove... No?