Jill Merriam Key Hyundai Blog

Dirty Trick Free Zone: Episode #33- Negative Equity

July 8, 2010

[youtube=http://www.youtube.com/watch?v=o33JmY8mw1U]

In today’s episode of the Car Dealer Dirty Trick Free Zone I talk about negative equity. Negative equity is one of the top situations that car buyers get themselves into. Negative equity happens when you owe more on your car than it is worth. 

 Unless your car is some sort of collectors car then it is a depreciating asset. Every mile that you drive your car, it becomes worth less and less money as you go along. Negative equity can occurr if the length of the loan on your car is longer then the amount of time you own it.

There are ways to avoid getting into this situation. The first way is to try to take out the loan for the amount of time you think you will own the car. The second way is to put more money down on the car and the third way is to check with the dealer to see if there is a big rebate on the car. This rebate helps reduce the loan amount and can keep you out of a negative equity situation.

If you need help anytime, no matter where you live, analyzing the car loan you are in please send me an email at jillcares@keycars.com. You can also find information about car loans on our site.

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