Many drivers don’t think about their vehicle's equity until it is time to sell it. If you have your eye on one of our MileOne used cars, it can be frustrating to discover you have negative equity in yours. At MileOne Autogroup, we’re addressing what it is and what you can do.
What is Negative Equity?
If you’re interested in selling your vehicle, you should start by getting an estimate of your trade-in value. If it’s less than the amount you still owe on your auto loan, that is known as negative equity. Sometimes, it’s also referred to as being upside down in your loan.
How Much Negative Equity Do I Have?
A lender won’t release your vehicle’s title until you pay off your loan, so you must do so before selling it. So, to start, you need to determine how much negative equity you have. You can estimate your trade-in value from an online resource such as Kelley Blue Book or visit our dealership. Your negative equity is the difference between that amount and your loan payoff amount.
What Do I Do?
The simplest solution is to pay cash to cover your negative equity if possible. If you can’t, you can start by adding some extra money to your monthly payments or even consider getting a personal loan to cover the difference. If approved, you can also roll it into a new auto loan, although that instantly gives you negative equity in your new car.
Explore Our Used Inventory at MileOne Auto Group
While it can be frustrating, you still have options if you have negative equity in your car. Our experts at MileOne Autogroup can help. Visit one of our convenient locations to get started today!