How can I trade in my car that has negative equity?
If the current loan payoff value on your car is greater than the trade-in value of the car, you have negative equity. The dealership slang is that you’re “upside down” in the car. It’s possible to trade in a car with negative equity, but there are several factors to take into consideration before you can do so. Remember: The dealership wants to sell you a new car.Negative Equity FactorsBe aware of the factors that could allow you to trade in a car with negative equity or leave you stuck with the car and current payment. The first consideration is your personal credit. If you have good credit, there are many options for the dealer to get you out of your old car and financed into a new one. If you have poor credit, the dealer will be limited by the loan-to-value ratio he’ll be able to get financed. If you’re a poor-credit buyer, you’ll usually be required to have positive equity in the form of a trade-in or cash to get financing on a new vehicle. The next consideration is how much the ne
