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What's the best way to get out of negative equity on your car?
I have negative equity on my car, but I've been wanting to trade my vehicle in for a new car. How do I get rid of negative equity?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Also known as being
upside down
, negative equity is when you owe more on your car loan than the car is worth. However, getting on the right side of the loan only requires some extra budgeting and payments on your part.To get positive equity to make the trade-in process easier and get some cash for a down payment, use these tips:
- Double up on payments each month
- Make a lump-sum payment each quarter
- Round your payments up to the nearest $100
- Make principal-only payments
If you’re searching for more ways to save money, don’t spend more than you have to on car insurance. Use the
Jerry
app to compare quotes from up to 50 providers, so you get the coverage you need at the best price. View full answer
- Gregory R.
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