Should you want to offer the automobile through your finance contract, together with automobile will probably be worth not as much as the quantity owed, you’ll need to cover the shortfall.
Negative equity explained
To spell out exactly just how equity that is negative in detail, let’s just just take an illustration.
Imagine you are taking away car lease on a 36-month contract for a new vehicle respected at ?20,000 at mortgage of 9.6per cent APR. Continue reading “In motor finance terms, negative equity occurs when your vehicle will probably be worth lower than your outstanding finance.”