Question: How Can I Get Rid Of Negative Equity On My Car??

To get rid of your auto loan’s negative equity, you could pay it off all at once, out of your own pocket.

For example, if you owe $12,000 on your vehicle and the dealer offers $10,000 for the trade-in, you would make up the $2,000 difference to your lender.

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.

Can I roll negative equity into a new car loan?

Roll over loan.

If you owe money on your old car, the dealer will often offer to roll that negative equity amount into the loan for a new car. In most cases, that means the total financed already is more than the car is worth and you’re upside down again.

Can negative equity be written off?

When you owe more money on your loan than the car is worth, you have negative equity. If you have negative equity in your vehicle, you can sometimes still trade it in using one of these three options: Pay the difference – If you’re able to, you should pay off the negative equity.

Photo in the article by “Flickr”