Am I in negative equity on my car

reggi2022

I part exchanged my car to obviously get the price of my new car down but the the value of my part ex was less than my settlement value I paid the difference of the valuation to the settlement price am I still classed as having negative equity. The reason I am asking is because my gap insurance are saying I am but I don’t think I am and that meaning they will only cover the value of the car after the part ex not before (Removed by Forum Team)

Goudy

You still owed £5101.63 on your Astra.

They have given you £4634.31 as PX.

This means the negative equity was £467.32.

This £467.32 it seems you have paid off.
So you were in negative equity on that Astra, but not anymore.

The new cars invoice is for £11732.31.
This is the figure a GAP insurance policy will cover, if your GAP policy is Return To Invoice policy.

They will not cover the £467.32 you paid to clear the finance on your previous car.
They will not cover the £30 RFL.
They will not cover any outstanding finance on the new vehicle.

It is as it says, Return To Invoice and the price on your invoice for that vehicle is £11732.31.

Nearlyold

The Gap insurer is correct, the "Invoice Price" of the car you bought is not altered by any negative or positive equity on any part exchange. If you'd been in positive equity would you be arguing the "Invoice Price" should be lower on the basis you'd somehow  paid less for the car