Car Financing

willjamess

Hi all! New here so I'm not sure if this is in the right category!

I decided to buy a new car in June. The dealer and I agreed a price and they offered me a price for my current car which is still on finance. As the settlement figure was less than the price, the equity has gone down as the deposit on the new car. 

Since the contracts were signed, there's been a huge wait due to supply problems etc but I've paid another 4 months of repayments.

My question is, will the dealer have to revalue my car and recalculate the equity? I appreciate it has continued to depreciate in this time but the value seems largely similar to what the dealer initially offered while the settlement figure is now much less. Am I just stuck because I've signed or do I have any negotiating power?

Thanks in advance!

Grumpy_chap

willjamess said:

Hi all! New here so I'm not sure if this is in the right category!

I decided to buy a new car in June. The dealer and I agreed a price and they offered me a price for my current car which is still on finance. As the settlement figure was less than the price, the equity has gone down as the deposit on the new car. 

Since the contracts were signed, there's been a huge wait due to supply problems etc but I've paid another 4 months of repayments.

My question is, will the dealer have to revalue my car and recalculate the equity? I appreciate it has continued to depreciate in this time but the value seems largely similar to what the dealer initially offered while the settlement figure is now much less. Am I just stuck because I've signed or do I have any negotiating power?

Thanks in advance!

Someone asked a very similar question recently:
https://forums.moneysavingexpert.com/discussion/comment/78567514#Comment_78567514

In essence, as I see it:
1. You agreed to buy a car for £x
2. The Dealer agreed to trade-in your old car for £y, so you pay £x - £y and any amount by which £y exceeds outstanding credit is yours
3. The settlement figure will be less now, so more equity
4. Why not check the value of the car at WBAC and if that is more than the new Dealer is offering, sell the old car elsewhere and just pay cash for the new car?