Negative Equity Car Finance Calculator

Settlement figure minus what your car is actually worth — the gap dealers hide in your next deal.

Request it from your lender — valid for 28 days

Use a realistic trade/part-exchange figure, not dealer asking prices

Result

Equity position-£3,000.00 negative
Financed if gap rolled in£25,000.00
Monthly with gap rolled in£632.86
Monthly paying gap yourself£556.92 + £3,000.00 upfront
Extra interest paid by rolling£3,645.30
Total cost of rolling gap£3,645.30

How it's calculated

  1. 1

    Negative equity = settlement £14,000.00 − car value £11,000.00 = £3,000.00

  2. 2

    Rolled into next deal: £22,000.00 car + £3,000.00 gap − £0.00 deposit = £25,000.00 financed

  3. 3

    Rolling the gap means paying interest on negative equity for the whole new term — the expensive option dealers rarely highlight

Negative Equity Car Finance Calculator — FAQs

What is negative equity on car finance?

When your settlement figure exceeds the car's current value. Common mid-PCP because the balloon (GFV) is owed in full while the car has already depreciated hardest in years 1–2.

Can I part-exchange a car in negative equity?

Yes — dealers routinely roll the shortfall into your next agreement. You'll pay interest on the gap for the entire new term, and the new deal starts underwater too. Compare against paying the gap yourself or waiting.

How do I get out of negative equity?

Cheapest routes: keep the car until equity recovers, overpay to close the gap, or check your Voluntary Termination position — once you've paid 50% of the Total Amount Payable (incl. balloon on PCP) you can hand the car back under Section 99.

Does a part-exchange offer beat a private sale?

Usually not — private sales (or Motorway/WBAC-style marketplaces) typically return 5–15% more than dealer part-ex, which directly shrinks your negative equity gap. Get both figures before deciding.

Will a new deal with rolled-in equity get approved?

Lenders cap total loan-to-value — rolling a large gap onto a new car can push LTV above their limit and get declined, or attract a higher APR.

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