Best Way To Get Rid Of Negative Equity In Car | FAST!!! (2022)
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- Опубликовано: 28 июл 2024
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Negative Equity is very common in auto loans. According to a lending tree report, www.lendingtree.com/auto/debt... over $56,000,000,000 dollars in auto loans are taken out each month in the United States. Combine that in low-interest rates and no money down deals and you quickly understand why negative equity is so common.
Here are five ways you can overcome negative equity and get your financial life on track.
1. The simplest and easiest way to attack this is to just ball out! Pay the difference. This may not be an option for most and don't worry I have some tips for those of us without deep pockets.
2. Most people find out they are upside down on the vehicle loan when they go to trade it in. This is mainly because dealers often try to buy cars as close to wholesale as possible. Trading in your car is a way to get from under your loan but you have to be careful. You have to ensure you are getting the most money possible when you go to trade it in. The only way to do this is to arm yourself with information. Get your car's blue book value and market value by comparing, KBB to Carvana, CarMax, etc. Use this information to ensure the dealer offer is fair and doesn't accept less.
3. Use your car to take part in this gig economy that we. are living in and sign up to drive for Uber, Lyft, Doordash, etc. Use this money to pay down your auto loan by making principal payments.
4. This may shock some but another option you have is to keep the car. DON'T TRADE IT. The dirty little secret is that negative equity in a car loan will disappear with time. Being upside down in a loan is not a big deal unless the car is totaled and you don't have gap insurance or you are trying to get into a different car. If you can't make the payment see #4 & 5.
5. If you are having trouble making your payment and may be facing a repossession another option is to sign up for peer-to-peer car sharing such as Turo, Getaround, HyreCar. Unlike ridesharing apps such as Uber and Lyft car sharing does not require as much time. This is because you are renting your car out to your peers and collecting a daily rate in exchange. Use this money to pay off your loan. This option has a lot of risks and should not be taken lightly. Be sure to read the TOS before getting started. You have been warned! I have decided to start a car-sharing business and will create a series on youtube to help you get started with Turo. Make you have subscribed!
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Thank you bro they don’t teach this stuff at school you dropped a lot of gems in this one 💯
They don't teach you this
If you can't read and write, don't need to worry about this
Thank you so much for this information it’s very helpful when it comes to being upside down in negative equity as that sure applies to me
Thank you for sharing your knowledge with us! Appreciate you man!!!
You have helped me so much. Thank you
got a car for 12k , my credit score was 663 at the time but it was my first car purchase … apr is 23% :( so sick of it and nobody will refinance me because i’m over 150k miles .
23%?! Holy shit! And I thought _I_ was getting fucked at 14.5% apr.
Advice did you end up refinancing at a better interest
Man I wish I had come across this a year ago. I went to the dealer 😔.
God helped my wife sell the car back to dealer to get out of a lease. Due the lack of used cars available. It wasn’t nothing negative on her credit report like repo or things like that.
That a blessing! I’m glad your were able to get out of it clean.
@@DiamondEdwards yeah it was car my wife co-signed for brother. I know bro don’t trust family but he wasn’t doing right. So we took it from him and 16 mos left to pay. Was a payment behind. I had just made payment and had $300 in late fees alone not including the payment. I made a payment with $200 of the fees included. When God performed his miracle. The dealer brought the plus the remaining payments. With no out of pocket $ from us. Then sold that car to a customer. I was floored I knew that God could open doors 🚪,but that was a double door opening. You teach so many great things please is my story if you can. Giving isn’t the answer, I was willing to suffer and make the payments. Instead of repo, turning it in or bankruptcy. Just to teach her a lesson and save her credit. Take care Diamond Merry Christmas.
@@jeffone2nv I am in the same boat with my wife. Pray for us.
I want a widebody scat pack you got me 😢
My payoff for my Jeep Truck is around 51k. Kbb says trade in is worth 40-42k. A dealer offered me 37k. My question is can I keep searching around for dealerships to trade in my truck for lease such as Hyundai who has 0 down lease on their cheapest car and transfer my negative equity? Great video by the way.
Yes car payment do suck! 😂
I'm new to this channel and I love your vids bro 👍
Thank you!
@@DiamondEdwards 👌 Bro I just have one question regarding this... Can I trade or sell my truck after refinancing my vehicle? Or I can't trade after I refinance?...thanks ✌️
How do you figure out the negative equity?
Well I have the worst case scenario my car is not operating good and I’ve been told that the catalytic converter has been removed and straight piped instead !! I don’t know how they were able to do that and sell this illegal car but I got scammed and I don’t know what to do at this point I’m very depressed
I’m currently underwater with my 2018 pathfinder by 7k. My pathfinder is valued at 17k and I want to trade it in for a Accord at 12,700, roll over the negative equity, put the balance toward the negative equity and pay on the negative equity as if I’m paying on the Honda.
Would that be possible? And smart
Any information would be appreciated.
When selling a financed car that has negative equity without trading it in and having to get rid of the car asap. No gap insurance. Is there any other option? Or there is no choice but to settle ?
Man… The biggest mistake I think I ever made in my life thus far was purchasing my 16 brand new then Silverado. I was foolish and didn’t have the sense of what I’m learning now. I traded my challenger in too early the equity rolled over, I chose the 6yr loan but working seasonal and out in the summer pushed me back further to here this month I should’ve been done but I owe 9,000 and some change left from 45k$ smh 🤦🏽♂️ as I realized my deal was a mess I did started paying extra but not realizing till I saw ur video on principal I could’ve paid more. I’m so glad I’m at the end of the road with this nightmare but I chose to keep it and pay it out and to never ever ever buy a vehicle or car note again
I feel that in my core lol I’m in a similar situation but I’m not at the end of it so it freaking stings every day. I’ll get there tho because I’ve learned my lessons.
I am in the same situation 😮
"Ball out - you got it." 💀😂
I can appreciate this video I just got this 2020 f150 xlt 30 days ago it was 28k no money down so I owe 33k but I’m realizing I should’ve just went with a newer vehicle because of the miles it’s at 86,000 so now I’m trying to figure what to do
And they got me paying 900 monthly because I had gift credit but no history paying anything off smh , I feel stuck
Hope ur good bro
Hi I was wondering what did you end up doing I’m in a similar situation with my car.
i bought a 2016 ram 1500 with 53400 miles on it for 26K..that is what I owe...I have 54700 on it now....so I'm good as far as Equity and what I owe...its not bad....I don't think I over paid for the truck in today's market...just my interest rate is high is the only thing...
Thanks for sharing! The market is roughy at the moment. It’s not the time to buy unless your have an emergency situation. Good luck on your refi.
@@DiamondEdwards yeah I might refi not sure. I bought 7 months ago so not bad I don't think for what I got at the time
Hi can I refinance if i have negative equity? I got a 2022 car with a credit score of 730 (i did a trade in so thats where i got the negative equity) at 12.9% interest.
With all my bills i dont have enough to make extra payments 😢
I have $13,722 left on my loan with my 2013 Ford Mustang. I wanna trade it in for a a 2018 GT thats worth $23,000. So I might just keep it or go ahead and trade it in.
If that a car u really want for some year I’ll do it 😭😭
Pay the 2013 off and put twins on it.
can you tell me what you mean by contacting my bank for a pay off statement ??
The company you pay for the loan is who you get that information from. A bank is a commonality and that's why I think he said that but it just really whoever you got the loan with.
Does paying your car payment early then the due date save your money on the interest?
Yea but like he said; some loans will still make you pay the entire interest amount that would have added up by the end of your loan; which would be an extra 10-15k. That’s why he said get a payoff amount by your loan agency
Carmax does not allow extra principal payments? Should I just make 2 regular payments a month.
If you owe a negative balance on your loan, and you want to sell your car to them, you have to fork over the negative balance AND the car.
What this means is you will be worse off after the fact because now, you gave away thousands of dollars, AND you're without a car.
They won't give you money for your car unless you don't owe the negative equity on the loan.
If you're car is worth $22,000, and your remaining loan balance is around $15,000, CarMax will give you $7,000 for your car.
My case: my car is worth $25,000 because it's a 2022 with under 15k miles. My loan balance is currently $36,000. If I sold my car to CarMax, I would have to give them $11,000 ON TOP of giving them my car, so going forward with it means being without a car, OR the $11,000.
Unfortunately for me and everyone else in my shoes, I'm stuck with it for however long it will take for me to pay down the negative equity.
It's my 6th car, but my first new car.
Yes they do. You have to contact them directly to make a principal only payment.
My husband just purchased me a new vehicle. The apt is 1.9 but my note is Fairly high. How can I get the note lowered?
He just brought too much car. Most of the time high payments is caused by a high interest rate but in your case it’s just the cost of the vehicle. There is no way fo reduce the payments on a loan with a 1.9% rate. Extending the loan is the only way but your rate will go up and cost you more in the end. Check with your bank.
@@DiamondEdwards I don’t want to mess up the interest rate though. So it’s absolutely nothing I can do about the payment Diamond?
@@priscillalittle2936 you can alway shop your rate and try to refinance at a lower rate but when you run the numbers in a loan calculator the difference between 1.9% and 0% is not the big. Ex: If you brought a $30k car at 0% for 60 months the payment would be $500/month. If that seems high you brought a car that was to expensive. I have some great videos to help you pay this thing off faster. Also, be on the lookout for my upcoming video on how to use your car to make some extra money.
@@DiamondEdwards thanks
I have a 2016 nissan 370z nismo i owe 48k and the car is worth around 38k what can i do? I dont have all the funds to just make extra payments
What you can do, is just keep the car and keep making payments.
You and I are in the same boat, only my car is worth 25k and my loan is 36k.
The magic question nobody actually knows. "Ohhh just pay it" is what everyone says. No real answers. Same boat bro.
Is it 38k or is it the term? Ask your bank for the pay off.
Cars are financial napalm! Stop buying expensive cars you don’t need. Watch Money guy show or Dave Ramsey. Get educated about money so you can avoid all this debt and crazy interest rates.
Car payments SUCK!
This is stupid imma use my car to add more miles on it just so I can get even less for my car
Don't just say it's stupid, please give the people some useful tips on how to get rid of negative equity. Remember they already are there so help them where they stand today.