Ugly Car Finance – Negative Equity Loan
The definition of upside-down generally identifies the specific situation by which vehicle customer owes more about their car loan than his vehicle is really worth. Being upside down causes dilemmas when selling or trade a motor vehicle, or whenever a motor vehicle is damaged in any sort of accident.
The quantity through which his loan balance surpasses the car’s market or trade-in value is named negative equity, or negative ownership value.
This disorder is often called being “underwater” with that loan.
Dealing with be “upside down” takes place most frequently with long-lasting car and truck loans for which minimal deposit had been made at the start of the mortgage, or in instances when a past car finance was “rolled over” into a brand new loan for the car that is new.