According to press reports and market research from industry analysts such as the Society of Motor Manufacturers and Traders (SMMT), the majority of buyers use some form of car finance when purchasing a car.
Nine times out of ten, getting a car loan to finance your purchase is perfectly straight forward.
There are occasions, though, when it might be a little more complicated. And one of those is when you need what is commonly called negative equity finance.
If you used car finance for the purchase of your current car, it is possible that the vehicle is now worth less than the amount still outstanding on the original loan. The car might have been involved in an accident, for example, or its value might have dropped because it has depreciated at a faster rate than you had imagined.
Either way, you might be in some difficulty if you want to sell the vehicle now and replace it with another — the proceeds from the sale are insufficient to pay off the original loan and you are still left with the outstanding balance to pay. How does that affect your ability to raise further personal loan car finance in order to buy your new vehicle?
That is where our ability here at CarFinance Plus to raise negative equity car finance on your behalf comes in.
It gets its name from the fact that, when you trade in your current vehicle in part exchange for a new one, we are able to raise sufficient finance to allow both needs to be met. Namely:
Provided you current car is accepted by a dealer in part exchange for a new purchase, the finance we arrange on your behalf is automatically used to clear your outstanding debt and paid to the dealer for the new or used car you are intending to buy.
Whether this is a solution which works for you depends on a number of factors, chiefly including:
Naturally, there is a limit to the amount of negative equity which may be cleared in this way and, with the above factors all in your favour, we may be able to settle as much as £1,000 in the outstanding debt on your current vehicle once it has been traded in.
Clearly, as big a deposit as you are able to manage on the new purchase increases your chances of success. You also need to demonstrate a clean record on some form of existing credit, are currently in employment in the UK, and have a UK driving licence.