Quote:
Originally Posted by Alice Coupe
Man maths is brilliant.
The 12k neg equity it is in the cost of the new car. It doesn’t vanish.
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Only had a skim read of the thread but if I understand correctly the OP's father in law traded an X6 with £12k of negative equity against an A7 on which he put down a £3k deposit; having done so he's now rejected the A7 and is in a situation whereby he has no car (or indeed any equity, positive or negative!).
However, to get to that position he's "only" lost the £3k cash he put into the A7 whereas to hand back the X6 and walk away debt free would have cost him £12k cash to clear the negative equity. Therefore, to get to a clean slate to start again isn't he £9k up in cash terms as a result of buying and rejecting the A7 as opposed to just handing back the X6?
However, it's been a long and stressful day so apologies in advance if I've missed something obvious!