What are the best ways to get positive equity on your car?

I want to make sure I have positive equity on my vehicle sooner rather than later. How do I do it?

Answer
Getting positive equity on your car loan is essential for staying financially healthy. The best way to have positive equity on your vehicle starts before you even purchase the car.
Making a sizable down payment and financing a car you can comfortably afford will keep you on the positive side. After you purchase the vehicle, you can also get positive equity through:
  • Staying on top of your payments
  • Paying down the principal with additional payments
  • Doubling up on payments each month
  • Rounding up on your car loan payments
Doing a combination of these can ensure that you don’t go upside down on the car loan, while also ensuring that you can make moves later down the road, such as selling the car or refinancing.
Remember that the car loan is only one expense of owning a car; you will also need to budget for gas, maintenance, and car insurance for your new vehicle. You can save money on car insurance by shopping for the lowest rates on the number-one-rated car insurance app, Jerry. Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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