Make and Model Recommendations for people with negative equity

Having negative equity—owing more on your car loan than the car’s current value—can feel like an uphill battle. However, there are still ways you can navigate this tricky financial situation while getting a reliable used car. Here, we provide some recommendations for affordable used cars available in the UK.

Before delving into our top picks, it’s worth noting that the key to overcoming negative equity is choosing a car that holds its value well and fits within your budget. Budget-friendly used cars often have lower monthly payments, allowing you to pay down your negative equity faster.

1. Vauxhall Corsa: The Vauxhall Corsa is an affordable option that offers solid reliability and low running costs. Used models are plentiful in the UK market, so you’ll have no shortage of choices. The Corsa’s enduring popularity also helps it retain its value over time.
2. Ford Fiesta: A common sight on British roads, the Ford Fiesta offers a sporty drive, good fuel efficiency, and a strong reputation for reliability. Despite its popularity, used Fiestas remain affordable, making them an excellent choice for those with negative equity.
3. Toyota Yaris: Known for its reliability and durability, the Toyota Yaris is a wise choice if you’re seeking value. The Yaris also boasts low running costs and is renowned for its long lifespan, helping you get the most from your investment.
4. Hyundai i10: This small city car has a strong reputation for dependability and comes with a 5-year warranty when new, so later models may still have some warranty remaining. The i10’s compact size makes it ideal for urban driving, while its affordable price point is great for those dealing with negative equity.
5. Skoda Fabia: Skoda vehicles are known for their value and reliability, and the Fabia is no exception. This small hatchback is affordable to run and maintain, and used models are typically reasonably priced in the UK.
6. Dacia Duster: If you’re after a larger vehicle, the Dacia Duster could be a smart choice. This budget-friendly SUV offers a lot of car for the money and has low running costs. Plus, Dacia’s reputation for simplicity and reliability makes the Duster a wise investment.

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While the above recommendations are solid options for affordable used cars in the UK, everyone’s situation is different. It’s crucial to research thoroughly and consider factors like running costs, insurance, and how well a car holds its value. If possible, try to pay off some of your negative equity before trading in or selling your current vehicle. And remember, consult with a financial advisor if you’re unsure about the best steps for your situation.