Negative Equity

Navigate Negative Equity with Confidence

What’s the Deal with Negative Equity?

So you owe more on your car loan than the actual car is worth—welcome to the world of negative equity. But hey, you’re not alone. Cars depreciate (that’s a fancy term for losing value), and they do it at varying speeds. New cars are especially quick off the mark in the depreciation race.

How Does Negative Equity Affect Different Finance Agreements?

  • Hire Purchase: At the beginning, you might be in negative equity, but as you make payments and the car depreciates slower, you can come out of it.
  • Personal Contract Purchase (PCP): Here’s where it gets tricky. The end-of-term balloon payment is based on the car’s predicted value. If your car’s value has plummeted more than expected, your balloon payment could be a real downer.

Stuck in Negative Equity? You’ve Got Options!

  1. Do Nothing: Continue your HP payments or simply return the car at the end of a PCP deal.
  2. Pay the Gap: Sell the car and pay the difference from your savings.
  3. Opt for Negative Equity Car Finance: Merge the cost of your negative equity and a new car into a single payment.
  4. Voluntary Termination: If you’ve paid 50% of the total loan amount, you can end the contract and hand the car back.

How Can You Dodge the Negative Equity Bullet?

There’s no foolproof way, but you can minimize the risk. Opting for a used car or putting down a sizable deposit can help. The smaller the loan, the less room for negative equity.

Why Choose Oasis Motor Finance for Your Negative Equity Solutions?

Life’s too short to let negative equity keep you from getting where you need to go. Whether it’s the daily school run, a shopping spree, or your commute, we’ll strive to find you the best deal, no matter your equity status. Plus, our dedicated account managers are always ready to lend a helping hand and liaise with dealerships for you.

Representative Example Of Credit (Hire Purchase)
Hire Purchase (HP) Finance Example: Cash Price £12,480.00 Total Deposit £1,140.00. Total Amount of Credit £11,340.00. 60 monthly repayments of £284.50. Interest Charges of £5,730.00 Total Amount Payable £18,309.00. Annual Fixed Interest Rate of 11.1%. Representative APR 18.9%.

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Oasis Motor Finance Limited is a company registered in England and Wales with company number 10055340. Oasis Motor Finance is regulated by the Financial Conduct Authority with Financial Services reference number 757830.

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Oasis Motor Finance Limited

Trident Park, Trident Way, Blackburn, Lancashire BB1 3NU

Oasis Motor Finance Limited is a credit broker and a lender.
We look to find the best rate from our panel of lenders, which we are part of and will offer you the best deal that you're eligible for. We don't charge a fee for our service, but we do earn a commission. This does not influence the interest rate you're offered in any way.

Applicants must be 18 years or over. We are only able to offer finance products from our providers.

Oasis Motor Finance Limited are registered with the Information Commissions Office under registration number: ZA196536.