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Negative equity in car – cover with down payment or use for newer vehicle?

Shawn Ryder

Understanding Negative Equity Negative equity, also referred to as being “upside down” on your loan, occurs when the amount you owe on your vehicle exceeds its current fair market value. This often arises from: Rapid Depreciation: Vehicles typically lose value quickly, especially in the first few years of ownership.

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Unveiling the Secrets of Buying Used Cars

Car Examer

Budget Considerations: Establish a realistic budget, considering not just the purchase price but also potential ongoing costs such as insurance, maintenance, and fuel. Negotiation Strategies: Know the Market Value: Research the fair market value of the specific make and model to negotiate from an informed position.