Upside Down is Dealership slang for Negative Equity. Who has it? Just about everyone, even dealership employees, so dont feel bad.
It is just a fact of life, cars depreciate. When you drive a car over the curb it loses value. If you buy from an individual, it still loses value. The only way to keep from being upside down is to:
1. Put Money Down
2. Pick a shorter term to finance; 48 months instead of 60
3. Do not Trade Too often
4. Make Sure You Get a Good Deal, Get Your FREE Quote!
These are just a few ways to avoid negative equity. Another one is to lease your vehicle. Some say, buy what appreciates and lease what depreciates. You lease for 3 to 4 years and get the best life out of the vehicle, turn it in, and lease another. Why worry about ever owning it. If you do own the car, it is worthless by the time you are through paying for it.
If you are upside down now and are looking for a lender to finance your new car along with your negative equity, check out Roadloans as they will usually finance 125% of NADA Retail. This is more than most lenders will lend. This will make it easier to finance a car without putting a bunch of money down.
Check out More Car Buying Tips To Save You Money:
Buying Used Versus New
Used Car Buying Tips
Negotiate Your Best Car Deal
Get Your New Car Quote Free
Wednesday, March 21, 2007
Negative Equity; Trading a Car When You Are Upside Down!
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3 comments:
Wow...really bad advice. Just keep the car till the wheels fall off; you're an idiot if you try to buy another car when you still owe money on the first one. And leasing is a stupid idea as well.
Or...save up until you pay cash for it. Works for me. And then you can really deal...
Well that might be bad advice but people don't understand that sometimes people are forced to trade-in. For example, My car has a shot engine due to monsoon and my insurance will not cover anything. Therefore, I'm stuck with a car payment for another year and a car that needs 2k-3k to fix. What would you do?
I woud just burn it than.
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