2/28/2024 0 Comments Time finance loansMonthly car payments can be expensive, even if you choose a long-term loan. However, choosing a shorter loan term can also help you avoid it. There are ways to avoid negative equity, like making a bigger down payment. If you have negative equity in your vehicle, it’s very difficult to sell or trade in your car without paying off the loan first. While negative equity isn’t necessarily a bad thing, there are some consequences, particularly around selling or trading in your vehicle. It’s also known as being "underwater" or "upside down” on your loan. However, long-term loans can actually cause you to pay more for your vehicle than it is worth.Ĭhoosing a long-term car loan increases the likelihood that you will have negative equity in the vehicle, which happens when you owe more than the car’s value. During any loan period, a car is depreciating in value. The longer you own a vehicle and the more miles you put on it, the less it's worth.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |