That makes it easy to get upside-down on your auto loan in a hurry — meaning you owe more money on your car than it’s worth.
7 ways to handle an upside-down car loan
- Pay it off.
- 2. Make extra payments.
- 3. Make payments every two weeks.
- Trade it in.
- Cancel any add-ons.
- Sell it privately.
Can you refinance a car that is upside down?
Yes, you technically can refinance an upside down car loan, but it’s generally not a good idea. There are other ways to remedy your situation, and refinancing an upside down car loan will probably only worsen your financial position in the long run.
What does it mean when your upside down on a vehicle?
Being upside-down on a car loan, means you owe more than the vehicle is worth. In car dealership slang, it simply means that, late in the life of your auto loan, you still owe more money to your car financing organization than the vehicle is now worth.
Can you trade in a car you still owe money on?
Yes, you can trade in a car with a loan. But proceed with caution and make sure you — not the dealer — control the transaction. If you’re trading in a car you still owe money on, you’re looking at one of these two situations: You have positive equity.
Photo in the article by “National Park Service”