Glossary / General

negative equity

68 Episode Mentions
Too Afraid to Ask

If you owe more money on your car than it’s worth, that’s called negative equity. It can make selling or trading in the car difficult because you still owe money.

Technical Definition

Negative equity occurs when the amount owed on a vehicle loan exceeds the current market value of the car. It often happens after large depreciation or if the buyer paid a low down payment.

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