Automotive Resources

Car Buyer Information and Guides

Auto Financing Center

Zip Code:

Country:

USA

Canada

Car Loan Help

Bad Credit Auto Loans

Auto Refinancing

Used Car Search

Make:

Model:

Zip Code:

Article Index

· Audi TT

· Auto Dealers

· Auto Loans

· Bad Credit Financing

· Car Loan Financing

· Car Price Quotes

· Car Search

· Cheap Cars

· Chevrolet Trucks

· Chevy Blazer

· Dodge Caravan

· Dodge Trucks

· Ford Cars

· Ford Escapes

· Ford Explorers

· Ford Focus

· Ford Mustangs

· Ford Trucks

· Fuels Efficient Cars

· GMC Trucks

· Honda Cars

· Infinity Cars

· Jeep Cheerokees

· New Car Buying

· New Car Dealers

· New Car Prices

· New Cars

· Online Car Buying

· Subaru Impreza

· Totyota

· Trucks For Sale

· Used Car Buying

· Used Cars

· Used Cars For Sale

· Vehicles For Sale

Upside Down Car Loans

Negative Equity Auto Loans
Staff Writer - LotPro.com

If you are upside down in your trade and wish to purchase a new or used car you should find a car with inherent positive equity in it. That is to say a vehicle has a higher value to the lender than its current market value. Examples include new cars with high cash rebates and used cars that are in high supply and low demand.

Regardless of the amount of the cash rebate lenders base the value of the new car on the invoice or MSRP amount. So if a new car has a $3,000 ncash rebate , you can apply the $3,000 towards your negative equity. An example of a used car in low demand used car would be a new convertible in the winter time. Such a vehicle would have a much lower market value that it’s book value.

You should also know that if you have negative equity and trade in your car expect to pay $20 to $30 per month higher for the new car for every $1,000 you are upside down. In other words if you have $5,000 in negative equity and see a new car advertised for $250 per month you should expect to pay from $350 to $400 per month for the same vehicle.

If you know what your interest rate is and how much you are upside-down you can use our auto loan calculator to find out how much more per month you could expect to pay for a new car.

Related Links

· Auto Loans For People With Bad Credit

· Bad Credit Auto Loan Financing

· Car Financing Online

· Car Loan Calculators

· Instant Car Loan Approval

· New Car Loan Rates

· Online Car Loans

· Upside Down Car Loans

· Used Car Loans