Stuck with a car worth less than you owe? Enter your Current Car Value and Loan Balance to find your Negative Equity Amount, then plug in your New Car Price, Down Payment, Rate, and Term to see your Monthly Payment, Total Loan Amount, and Total Cost.
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Negative Equity Amount
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Total Loan Amount
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Total Interest Paid
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Total Cost of Car
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Negative equity occurs when you owe more on your car loan than the car is currently worth. This is also called being 'upside down' or 'underwater' on your loan. It commonly happens due to rapid depreciation in the first few years of ownership.
Rolling negative equity into a new loan increases your monthly payments and total interest costs. It's generally better to pay off the negative equity separately if possible, or wait until your loan balance matches your car's value before trading.
Negative equity is added to your new car's purchase price, increasing the total loan amount. This results in higher monthly payments and more interest paid over the life of the loan.
Yes, you can pay off the negative equity amount in cash at the time of trade, or continue making payments on your current loan while financing the new car separately. Some dealers may also offer cash incentives to help cover negative equity.
Consider keeping your current car longer until you owe less than it's worth, make extra principal payments to reduce the balance faster, or save cash to cover the negative equity amount when you trade.
Make a larger down payment, choose a shorter loan term, avoid financing add-ons and extended warranties, and select a vehicle that holds its value well. Making extra principal payments early in the loan also helps.
Possibly. A higher loan-to-value ratio from rolled negative equity may result in a higher interest rate. However, your credit score and other factors are typically more important in determining your rate.