Are you currently stuck in a situation where you owe more money on your car than what it’s worth? This is called “negative equity,” and it can be a frustrating financial burden. But there’s good news: you can finance negative equity for your car and take control of your finances.
In this blog post, we’ll cover everything you need to know about negative equity on a car and how you can finance it. We’ll also give you reasons why you might want to sell your car if you have negative equity. So, let’s dive in!
What is Negative Equity on a Car?
Negative equity on a car is when you owe more money on your car than its current market value. This can happen when you take out a car loan and make payments for some time, but the car’s value decreases over time due to factors such as depreciation, wear and tear, and accidents.
For example, let’s say you take out a car loan for $20,000 and make payments for two years. During this time, the car’s value decreases, and now it’s worth $15,000. However, you still owe $18,000 on the car loan. This means you have negative equity of $3,000.
Why You Might Want to Sell Your Car if You Have Negative Equity
Having negative equity on a car can be stressful, and it can feel like you’re stuck with a car that’s worth less than what you owe. However, there are a few reasons why you might want to sell your car if you have negative equity:
Reduce Your Monthly Payments
If you’re struggling to make your monthly car payments, selling your car and financing the negative equity can reduce your monthly payments. This can free up some of your cash flow and make it easier to manage your finances.
Get a New Car
If you’re looking to upgrade to a newer or better car, selling your car and financing the negative equity can help you get there. You can use the money from the sale to make a down payment on a new car and finance the negative equity.
If you’re unable to make your car payments, the lender may repossess your car. This can negatively impact your credit score and make it harder for you to get loans in the future. By selling your car and financing the negative equity, you can avoid repossession and protect your credit score.
How to Finance Negative Equity for Your Car
Now that you know what negative equity on a car is and why you might want to sell your car if you have negative equity let’s go over the steps to finance negative equity for your car.
Determine the Amount of Negative Equity
The first step is to determine how much negative equity you have on your car. You can do this by finding out the current market value of your car and subtracting the amount you owe on the car loan.
Find a Lender
Don’t Trade It In has done this step for you. Click here to learn more about our lending partner, LightStream.
Apply for Financing
Click here to get a step-by-step guide on how to apply to finance negative equity on your vehicle.
Complete the Sale
Once you’re approved for financing, complete the sale of your car with our team at Don’t Trade It In.
Pay Off the Negative Equity
After the sale is complete, you’ll need to use the proceeds from the sale and the financing to pay off the negative equity on your car.
Make Your Monthly Payments
After you’ve paid off the negative equity, you’ll need to make your monthly payments on the financing. It’s important to make these payments on time to avoid any negative impacts on your credit score.
Click Here to Apply
If you’re ready to finance negative equity for your car, click here to apply. Our leading partner offers competitive rates and flexible terms to help you get the financing you need. The application process is simple and easy, and they’ll work with you to find the best financing solution for your situation.
Conclusion—Owe More Than Your Car is Worth? Let us help.
If you’re searching for ways to finance negative equity for your car or if you owe more than your car is worth, you’ve come to the right place. At Don’t Trade It In, we understand the challenges of negative equity, and our lending partner offers financing solutions to help you take control of your finances.
LightStream’s financing options for negative equity on a car are designed to be flexible and competitive, so you can get the financing you need at a rate that works for you.
In conclusion, negative equity on a car can be a frustrating financial burden, but it doesn’t have to be. By financing negative equity for your car, you can take control of your finances and get back on track. We hope this blog post has been helpful in explaining what negative equity on a car is, why you might want to sell your car if you have negative equity, and the steps to finance negative equity for your car. Remember to click here to apply for financing and take the first step towards financial freedom.