How Do You Avoid Negative Equity In Cars?
Negative equity means that you owe more on a car than what it’s worth. Another popular phrase to describe it is being “upside down” on your car loan. It’s a bad financial position to find yourself in, so find out now how to avoid negative equity in cars. Live within your means. Buying an expensive car with little money down will saddle you with hefty payments for 5 years and your will likely find yourself in a negative equity situation down the road. Buy only what you can afford and save before you buy so that you have a reasonable down payment. This will help you to pay off your car faster with lower monthly payments and avoid negative equity in your car. Realize that if you have to finance a car over a 5-year period, you aren’t going to be able to trade it at 2 or 3 years for the next great vehicle without a serious financial hit. The dealership will roll into your new car loan the amount of negative equity you owe on the old one. But it’ll mean higher payments over a longer term for
