How best to deal with car finance in negative?

I have a car that is worth €8,000 and the finance outstanding is €11,000 so if I buy a car with a trade in bonus it narrows the gap in clearing my loan. Toyota's deal comes to mind here. Apart from finding the difference myself is there any option open to me?

Thanking you.

Gerard Power (Kilrush,Co.Clare.)

Nov 2018 Filed under: finance

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Expert answer

Hi Gerard,

Theoretically yes, but the trade-in bonuses are not that straightforward. They’re not a blanket ‘we’ll give you an extra €4,000 on top of what your car is actually worth.’ Rather, they’re usually intended as a sweetener to get owners of older cars, who might not usually be shopping for a new model or with a main dealer, in through the door with the chance for a half-decent trade-in. I’d check the fine print of any deal on offer, and have a good chat with the dealer in question, before committing to anything. If you’re in negative equity with your car loan, I’d also sit down for a chat with either your own accountant (if you have one) or with a financial adviser at your bank before proceeding.

They may have some helpful advice.

Neil Briscoe - Complete Car Advisor
@neilmbriscoe