Negative Equity Car Loan

Negative Equity Car Loan

Your loan payoff is $18,000, but your car is worth $15,000. You have negative equity of $3,000, which must be paid if you want to trade-in your vehicle. If the dealer promises to pay off this $3,000, it should not be included in your new loan.
On paper a negative equity car loan may look like it is the end of the world, but there are options for those who are upside down in their current auto loan. The main thing to do is to simply keep paying on the vehicle until the amount is paid down enough or paid off altogether.
You may owe more on a car than it's worth due to depreciation. Don't worry! Our in-depth guide shows you how to get a car loan no matter what you owe.
Use this calculator to estimate your car payments with negative equity.. Enter the loan amount that will not be paid off but will rollover into the new loan. Amount .
This is known as negative equity, or being "upside down" on your loan. There's really nothing wrong with this – as long as you plan on keeping the car and .
Being upside down on a car means you owe more on your car than it's currently worth. Learn how to deal with an upside-down car loan.
Entering into a new car loan with negative equity is never a good idea, as owing more on a car than it's worth can be the beginning of a serious financial .
It becomes a little more difficult to trade and to get a lender to allow you to roll that much negative equity from one loan to another, you will need to have a better .

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