Glossary / General

negative equity

49 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.

Hear It Discussed

"it's good information actually yeah I mean it's not for everybody but if you know if you're not putting a big down payment down or especially if you've got negative equity going into a loan gap..."
Car Pro Radio Show May 23 26 Hour 2 CarPro Radio Show 27:24

"and combine that with negative equity that is 540 basis points higher this year than it was last year... many people are over $10,000 upside down on their car right now"
Used Car Prices SKYROCKET to RECORD HIGHS | Episode 1073 CarEdge Live 25:01

"And the average amount today, Edmunds just came out with a report, the average amount of that negative equity is nearly $7,200."
#343 FTC Crackdowns : New Car Dealer Rules You Need to Know Wrench Nation 28:06