What do we mean by ‘negative equity auto loans’? Well, we’re not saying you can get an auto loan because of the negative equity in a particular vehicle; this means auto loans for folks are available, even if they have purchased a vehicle and are currently in and “upside down” [negative equity] situation with their car.

So what, exactly, is “negative equity”? Negative equity  means you have purchased a car, truck, SUV, etc, and the amount you still owe is greater than the vehicles is currently worth on the market.

For example, say you bought a car at $15,000, go to trade it in, in a year or so, and find the current market value for your car is now only $8,000, and you still owe $12,000. That’s an “upside down” situation.

But there’s something here to be remembered.  Auto dealers who finance auto loans already know—expect, in fact—that cars immediately begin to depreciate in value once they are driven off their car lots, and the truth of the matter is, the auto financing industry basically plans for vehicles to lose their value.  It’s not like they expect them to go UP in value!

The great thing here is special finance managers have techniques to allow for the negative equity in your vehicle for trade value in a manner that will look better to the bank.  It’s somewhat complicated, but quite possible, once you have the right people working for you!  The first—and usually most difficult—step is to begin the application process to see how special finance managers can make the numbers work for you.

Apply online today.

If you have a car that you won’t need after you get  your next car you may be considering trading it in.  If you are going to trade your car in you may have wondered how much can you get for your trade in. If you are going to trade your car in, please keep a few things in mind; One, if you owe more on your car than it is worth you aren’t using it as a down payment. This is called negative equity. To find out APPROXIMATELY what your car is worth go to kbb.com. This will give you some idea. Make sure you use the trade value and not Private Party value or retail. You cannot expect either of those values  from the dealer. Then don’t look at excellent value, it says that LESS THAN 5% of ALL cars are in excellent condition.  You can always negotiate your  trade allowance with the car dealer just be realistic.

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If you have bad credit and are looking for an auto loan, the banks are usually going to look for a good equity position.

If you are upside down in your auto loan this simply means you owe more to the bank then you can get back on trade in, or outright sale to combat this you will need to do one of the following options 1) Roll balance over on to new loan.