Car finance help

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afcafc
afcafc Posts: 34 Forumite
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Hi guys

I want to lower my finance outgoings but need some advice.
I have an Audi atm with three years left to pay at £200 per month- settlement figure is £6800. This is a 2008 plate.

I'm looking to just get a car for 1-2k or even less but the problem is that I'm in negative equity. As my car is only worth £4345. I have to wait a year to VT but is there anything else I can do? Thanks

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  • System
    System Posts: 178,093 Community Admin
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    Nothing other than find a dealership to sell the car to and pay the difference between what they'll pay and the settlement figure. Learn the lesson from all of this and vow not to repeat it.
  • afcafc
    afcafc Posts: 34 Forumite
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    Ok so the only way is to add negative equity on top then I guess
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    How is adding £2500 to a new loan going to save you anything? That's £200 a month just there if you can VT in 12 months time so why bother?
  • The_Real_Cheddar_Bob
    The_Real_Cheddar_Bob Posts: 542 Forumite
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    camelot1971 wrote: »
    How is adding £2500 to a new loan going to save you anything? That's £200 a month just there if you can VT in 12 months time so why bother?


    It's not 100% about saving money, more getting rid of a monthly liability. I have recently done this and never felt better.

    I won't be getting PCP or HP again.
    Pay the difference and never look back
  • afcafc
    afcafc Posts: 34 Forumite
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    thas the position I'm in either keep it and Vt then get another vehicle or get rid and add the equity in which will lower my monthly payments
  • afcafc
    afcafc Posts: 34 Forumite
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    I am in the exact same position as you mate. What car did you end up buying in the end?
    Cheers for the advice
  • stridernje
    stridernje Posts: 11 Forumite
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    Hi, have you settled this yet?
    Also be sure to know when you can exactly VT your contract. Car salesmen will tell you its halfway through which makes you believe its 2 years into a 4 year contract. But by halfway the documents read half the value of the money loaned to you and that includes the final payment and credit costs so its more like 3 years into a 4 year contract.
    Unfortunately whilst you have negative equity there is very little you can do unless you go to a dealer and start the whole process again factoring in the negative equity and ultimately buying a much cheaper car. But if it meant lowering your payments I dont know if they would want to help you as it means you will be taking money away from them.
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