The word equity is often used when talking about Alfa Romeo Preferenza. What precisely does it mean here?
The final payment on your car is an estimate of its value at the end of the agreement – the guaranteed minimum future value. If the actual value of your car exceeds this figure at the end of your agreement, the extra money is equity, that you can use as a deposit on your next car. We always try to keep the final payment lower than a typical trade-in value, to increase the possibility of you benefiting from this equity, but it should be viewed as a bonus rather than a certainty. You could say that you can win but you can’t lose!
