Check the numbers first
Get a written settlement figure from your lender and a valuation from Motorway/WBAC/CAP HPI. The gap is your negative equity. It's usually less scary than you think — many drivers are £500-£2,000 in negative equity mid-term, not £10,000.
Option 1: Ride it out
If you love the car and don't want to change, negative equity is only a paper number. Keep paying, and by the end of the agreement you'll own it outright. Nothing to worry about.
Option 2: Refinance longer
Refinancing extends the term at a lower monthly payment, which lets the value curve catch up with the balance over time. Especially useful when you can't afford the current monthly.
Option 3: Roll into a new PCP
Dealers will often absorb up to £2,000-£3,000 of negative equity into a new PCP agreement, effectively financing it across the new term. Cheaper in the short term but more expensive overall.
Option 4: Voluntary Termination
If you've paid at least 50% of the total amount payable, you can hand the car back and walk away with nothing further to pay — cutting the negative equity in one legal move. See our full VT guide.
