Category Archives: Colorado Car And Payday Loan

In car lease terms, negative equity is whenever your car or truck may be worth not as much as your outstanding finance.

Meaning

If you want to offer the motor vehicle through your finance contract, together with automobile may be worth lower than the quantity owed, you’ll need to cover the shortfall.

Negative equity explained

To describe just how equity that is negative in detail, let’s just just just take a good example.

Imagine you take down motor finance on an agreement that is 36-month a new vehicle valued at ?20,000 at mortgage of 9.6per cent APR.

Your total amount payable with interest is ?22,963.50, along with your cost that is monthly is. Continue reading