Negative Equity, what to do!?
Discussion
Looking for possible options for my situation. I currently have a Renault Clio 220 Trophy with coming up on 18k miles. Had since new from the end of 2016. Basically I am looking at moving to New Zealand at the beginning of next year so I am currently getting rid of all my debts prior to leaving.
The clio is going to have negative equity no doubt about it as I part ex’d a nearly new motorbike to get the car and the neg equity from the bike was added on to my car finance. So basically I have a settlement around 18k but the car is worth about 13-14k. But I am paying just under 400 a month for the finance so my plan was to try and cut that down to allow me to save up more for my trip.
My options that I am thinking is try to part ex the car for something a lot cheaper just as a run about till I leave and transfer the neg equity onto to that or sell the car privately and take out a small personal loan to pay off the neg equity and just by a banger. Either way I am going to have to pay the neg equity which I understand but just not sure the best approach to go for as I still need a car till I leave.
The clio is going to have negative equity no doubt about it as I part ex’d a nearly new motorbike to get the car and the neg equity from the bike was added on to my car finance. So basically I have a settlement around 18k but the car is worth about 13-14k. But I am paying just under 400 a month for the finance so my plan was to try and cut that down to allow me to save up more for my trip.
My options that I am thinking is try to part ex the car for something a lot cheaper just as a run about till I leave and transfer the neg equity onto to that or sell the car privately and take out a small personal loan to pay off the neg equity and just by a banger. Either way I am going to have to pay the neg equity which I understand but just not sure the best approach to go for as I still need a car till I leave.
marcella said:
It's a 4 year PCP. I can't do a termination until middle of next year unfortunately.
With VT you have to pay off 50% of the total finance, which I guess you could do at any time.If you wait until the end of this year then pay off the remaining amount just before you go, I'm guessing would be 6 x £400 = £2400.
Would this work out?
mrunderhill said:
With VT you have to pay off 50% of the total finance, which I guess you could do at any time.
If you wait until the end of this year then pay off the remaining amount just before you go, I'm guessing would be 6 x £400 = £2400.
Would this work out?
Ah I didn't realise that was an option. Will look into that also, thank you!If you wait until the end of this year then pay off the remaining amount just before you go, I'm guessing would be 6 x £400 = £2400.
Would this work out?
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