The true cost
Part-Exchange Calculator: Equity on Finance
Work out the equity in a car you still owe finance on before you part-exchange it.
Shortfall
£1,500
Settlement figure
£10,000
You're in negative equity
- Car value
- £8,500
- Less settlement
- −£10,000
Negative equity means the car is worth less than you owe. You can settle, sell with the shortfall covered, or wait until you're back in positive equity.
How we work this out
Equity = part-exchange value − settlement figure. A positive result is equity you can put towards the next car as a deposit. A negative result is negative equity — the shortfall you would need to cover or carry over.
Get your exact settlement figure from your lender. The car's value is what a dealer or buyer will actually pay, not the screen price.
Full method: how we calculate.
Part-exchange equity is your car's value minus the finance you still owe on it. This calculator works out whether you are in positive equity — money towards your next car — or negative equity, where you owe more than the car is worth.
Equity is what you can roll into your next deal as a deposit. Enter the car's value and your settlement figure above to see exactly where you stand.
What is part-exchange equity?
Part-exchange equity is the difference between what your car is worth and what you still owe on the finance. If the car is worth more than you owe, the difference is yours to put towards the next car.
You can part-exchange a car that is still on finance — the dealer settles your outstanding finance from the sale and gives you any equity left over. To do it, you first need two numbers: the car's real value and your settlement figure.
How to work out your equity
Take your car's part-exchange value and subtract your settlement figure — what is left is your equity. A positive number is a deposit towards your next car; a negative number is a shortfall.
Worked example
Positive equity vs negative equity
Positive equity gives you a head start on the next car; negative equity means you owe more than the car is worth. The two lead to very different conversations at the dealer.
If you are in negative equity, check exactly how much with the negative equity calculator before you commit to a new deal.
| Positive equity | Negative equity | |
|---|---|---|
| Car value | £9,000 | £6,500 |
| Settlement | £7,000 | £7,000 |
| Equity | +£2,000 | −£500 |
| What it means | Deposit for your next car | Shortfall to cover or carry over |
What to do if you are in negative equity
With negative equity you can cover the shortfall in cash, carry it into the new finance, or wait until you have paid more off. Carrying it over costs more in the long run.
- Pay the shortfall in cash so you start the new deal clean.
- Wait and keep paying — equity usually turns positive as the balance falls faster than the value.
- Roll the shortfall into the new agreement — possible, but you finance the negative equity on top, raising the total amount payable.
Using your equity as a deposit
Positive equity works exactly like a cash deposit — it lowers your next monthly payment and the total interest you pay. A £2,000 part-exchange equity is a £2,000 deposit.
See the effect on a new deal with the deposit calculator: on a £20,000 car, £2,000 of equity cuts the monthly by around £50 and the total cost by roughly £400 over 48 months. Then compare finance types on the PCP and HP calculators.
Selling on finance and your rights
You cannot legally sell a financed car until the finance is settled — the lender owns it until then. Part-exchange handles this for you, because the dealer settles the finance as part of the deal.
Read how it works in can you sell a car on finance. And if a past deal carried hidden commission between 2007 and 2024, you may be owed redress — check with the compensation estimator, free to claim yourself.
Frequently asked
How do I work out part-exchange equity?
Can I part-exchange a car that's still on finance?
What is negative equity on part-exchange?
Can I use part-exchange equity as a deposit?
Do I need my settlement figure to part-exchange?
Work out your next step
Independent calculators — pick the one that fits your situation.