It’s a position you usually want to avoid.
Especially if we’re talking about upside down car financing for a vehicle on which you’ll be making monthly payments for some time to come.
Upside down car financing means you owe more money on your vehicle than it’s worth, which can get you in even bigger financial trouble when you want to trade it in for another vehicle. As you’ll see, upside down car financing can happen the moment you leave the lot.
Buyers fall into the trap of upside down car financing for several avoidable reasons:
- Not doing their research on vehicle costs
- Not shopping for the best loan terms
- Not having enough of a down payment
- Getting unnecessary options
- Stretching out monthly payments
- Rolling over money still owed on their current vehicle into a new, larger loan.
In short, it’s often the result of getting more car than the shopper can afford.
Our infographic below is aimed at helping car shoppers avoid falling into the large group of people who owe more on their vehicles than those vehicles are worth.
In other words, how to avoid the …