The situation
Negative equity means you owe more on your current van's finance than the van is currently worth — common with PCP-style balloon agreements or if the van has depreciated faster than expected. Some lenders will let you roll the shortfall into a new agreement, but that means starting the new finance already owing more than the new van is worth, which can compound the problem if it happens again.
What tends to help
- Get an up-to-date settlement figure from your current lender and an independent valuation of your van before assuming the size of the shortfall.
- Rolling negative equity into a new deal increases your monthly payment and total cost — model both scenarios before deciding.
- Paying down some of the shortfall in cash, even partially, reduces how much negative equity carries forward.
- Ask any new lender directly whether they accept part-exchange with negative equity, since not all do.
Lenders worth checking
Based on published eligibility criteria and lender positioning — always check current terms directly, as criteria change.