Wed, Jul 12th - 2:41AM
Swim through Negative equity: Buy a car in an Upside Down Auto Loan Situation
‘Being able to breathe underwater would be sweet.’ - Cameron Bright
is exciting to be able to breathe underwater, but when you actually go
below the water surface, you will develop breathing issues. Similarly,
when your auto loan situation is underwater, you will face myriad
problems. In financial terms, being ‘underwater’ means to have negative
equity on your asset such as a car. In simpler words, it is to owe more
money to the lender than the actual worth of the car. It means being in
an upside down auto loan situation.
How to deal with Negative Equity on your car?
Life may not be always beautiful underwater!
equity occurs when you try to get out of the auto loan before it is
paid off. The reason may be you bought a Sedan and now you need a SUV
for transportation or you can’t afford the current monthly payments.
Nowadays, people need change and variety in driving a car and so they
think of buying a new car before pay off the current auto loan.
When you have unpaid balance on your current loan, the situation of upside down auto loan arises. Let us understand the reason behind negative equity in detail:
>>You bought an expensive car that you could not afford because of the high monthly payments.
did not pay a large down payment in the first place which caused a rise
in your auto loan balance. As a result, you are stuck with unaffordable
have an upside down auto loan because you are paying high rate of
interest. The reason can be your bad credit score.
>>Your auto loan term is too long resulting in slower repayment of the debt.
>>You rolled an old auto loan into your current auto loan which led to a rise in the total debt amount.
Negative equity and Upside Down Auto Loan: Let’s swim to the shore
the fact that you are upside down on your current auto loan. You will
have to deal with the difference between the car’s current value and
what you still owe on the auto loan. Save yourself from going underwater
with these helpful tips and swim to the shore!
outstanding balance isn’t going away so you will have to pay the
difference before buying a new car. If you cannot afford to pay now,
keep making payments on your current auto loan. It will improve your
upside down auto loan situation.
can roll over the difference into your new auto loan. When you opt for
it, the balance on the current auto loan amount will be included in the
new one. You will have to make higher payments if you choose the option.
>>If lowering down the monthly payments is your top priority, consider refinancing your auto loan and get an extended loan term. It will provide you instant relief from high monthly payments.
overtime and earn extra bucks to pay off the outstanding loan amount.
Working a few additional shifts might be the easiest way to get more
cash in your pocket. Also, it will help you to lower the negative
your old car. You can get instant cash and it will help in repaying the
current auto loan. When it is paid off, you can begin another journey
with your new car and a new auto loan.
you are driving your old car and see a new model of a car passing by,
it will give you goose bumps. If you need the luxury of a latest car,
you will have to consider your current outstanding auto loan balance.
Before making any decision, consider how negative equity on your current
car will affect your financial situation. Think about the upside down
auto loan and prepare a detailed plan to tackle the plan. Only then, you
will have the best chance to swim though the problem of negative equity
and reach the shore.
you want to buy a car immediately, trust the online auto financing
expert. RapidCarLoans.net will help you to make a quick car purchase. It
provides guaranteed bad credit auto loans to buy the car of your dreams. Apply now for guaranteed auto loan approval.