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3 tips for getting a car loan with a Negative Equity Trade In

Negative equity, or being “upside down” is probably the single biggest factor in NOT getting a car loan. Certainly having bad credit makes getting a car loan tough, but when you owe 8, 9 or 10 thousand dollars more than your car is worth you have added some real challenges. That’s not to say that you can’t get a different vehicle with negative equity, it just means you have to be prepared to understand how it effects the process.

1. The first thing that solves negative equity is money down. If you know you are in this position then putting some money down is probably a smart move.  After all, what ever is owed on your trade to the bank and not covered by the actual value of the trade is going to get added to your loan on the next vehicle.

2. Huge sums of money down may not be possible for your current situation so the next thing we need to consider is the type of vehicle. This is when it becomes important to be working with a dealership that understands how to deal with this type of situation. Car Loans on Demand specializes in connecting you with these dealerships. All too often we hear stories about customers who spend hours in a dealership test driving cars that don’t work for their situation only to have the bank ask you for thousands of dollars down at the end of a 6 hour day at “Not so Smart Motors”. Nothing could be more frustrating. So getting back to proper inventory selection-our network of dealers stocks specific inventory that can help get you out from under your negative equity situation by suggesting one of these vehicles.  The really exciting part about this is that we won’t be showing you old high mile cars.  In fact it’s just the opposite.  If a bank is going to loan you a lot of money for a car it’s going to be on something newer and with lower miles-they want your vehicle to last so that you’ll be able to keep it longer, enjoy it, and ultimately build equity in the vehicle as you continue to make your payments. Often times our dealers can actually put you into a new car or SUV.

3. The last component of getting a loan in your current plight is extended terms. Everyone has a comfortable payment range and the odds are your payments will be going up slightly when you upgrade your vehicle to get you out of this spot-that’s not always true as it may be possible to get a lower interest rate on this loan as compared to your last one. Be that as it may, it is important to explore all payment options so that you can comfortably afford this purchase. Getting a car loan for 72 months is probably going to be the term that works best to keep your payments where you need them to be.

So the bottom line is that working with Car Loans on Demand can be a very rewarding experience because our dealer understand what it takes to you get you into a car and can do it fast! Email us today.

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