How can I get out of the negative equity in my car?

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How do I get out of negative equity in my car? In this video we cover the topic of being up side down in a car loan. Also known as flipped in your car, buried in you cars, or you car being under water.

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[tararomanow]

I like the little DaveB icon in the bottom right, very nice 👌

[OneAwayTV]

I always recommend to a client to lease a vehicle. Trade in your vehicle and let it eat up all that negative equity. Your payments will be higher for 18 months but you will be out of a 72 month loan and a terrible situation. Then when your lease is up you won’t have any negative equity because your car won’t depreciate and you can either lease again or just hop in another car in a better position.

[jpms]

Dave. A honest salesperson like you is hard to find these days.

[Luke]

Very valuable and practical advice Dave. It is impressive that you are giving your customers advice on what is best for them, instead of pushing them for that extra sale.

[jhmcd]

You see, here is a major problem with this. I had to get a car during the pandemic when dealers where charging almost $10k market adjustment fees. Only KBB only goes off MSRP. Now I am almost $20k upside down on a car that, thanks to a pay cut at my job, I can barely afford. Originally I was going to push it to 3 years then refinance, now I don't know what to do other than to get a bargin lot special that can absorb the negative equity but put me where I should have been on the car payment to begin with.

[dondenis]

Keep it and drive it until the wheels fall off. To many people think they have to keep up with the Jones with cars.

[motovate]

Went to a Kia dealership, the tried to get me into a niro🗑️ now only Minuites into your vid your telling me to just hold on to it👍🏽 thank you for the advice

[randischwarz]

Dave; I am often amazed at the information and suggestions your provide. I have always made larger then required car payments. Hence my car loans have gotten paid off 1-2 years early. I have also never been upside down in a loan. My current new vehicle a 2023 Subaru Outback Touring XT, the out the door price was about $44K, of which I had a down payment of $38k. The subvented financing was 48 months at 2.9%, for a payment of $122/month. I pay between $200 and $250 each month. I find it interesting that amount due is shown as $0 due to the fact I am so far ahead. Keep those great videos coming.

[spazzman]

Rule number 1. Don't trade in your car. Or at least, don't rely on just the dealer's offer. Try some of the internet buyers. Last couple of car moves, internet buyers have left dealers in the dust for offers.

[jonnyb]

Great Advice. We bought a low milage dealer demo with Low apr on a loan. We had it for a 1 1/2 years and it had a major failure that could not be fixed. So we traded it in with upside down equity of $2000. We we bought a new car we recieved $2000 cash back and 0% rate. It is the the car we still own today 4 years later and now have positive equity. We decided with the today's market we will wait until it is paid off to start looking for a newer model and things settle down some...Another great Video Dave!!!

[johnneufeld]

Great video!
I learned that in the pre-purchase phase you should not overpay for the vehicle. Don't buy expensive dealer extras like extended service contracts, dealer installed options, etc. Put money down or better yet, pay cash for the vehicle. That way you're living well within your means and interest rates don't matter. If you can't pay cash then you can't afford the vehicle.
Post purchase keep the vehicle until it's paid for. Then save the monthly payments for yourself instead of blowing it on another vehicle.
"Put negative equity into a lease." Leasing is mathematically the most expensive way to rent a vehicle. Adding negative equity into a lease is amping up the most expensive option like it's on steroids. Utter financial madness.
"If you 'want' a new car every 3 years, then lease. You'll always have a payment." Translation - You'll always be giving your hard earned money to someone else and you'll always be broke.

Fantastic video!

[MiraMoo]

I have a 2014 Nissan Sentra. Buyout price is $23k. I’m currently $15k upside down. I was told the banks interest rate constantly fluctuates so the upside down price could go up or down. My car payment is $500/month. They’re also charging me $160/ month for temporary insurance while I have my own full coverage. It’s been 3 months they still won’t update my insurance. My transmission went out a year after I got the car and it’s $4k to repair so I’m making payments on that. Im young, no dad, have no clue about buying cars. I think I may need a lawyer cause I’m getting screwed.

[My-MD-Videos]

In some respects this is what happens when you pay over MSRP and have a long loan, it takes the customer out of the market. Bad for the customer and bad for the dealer. They won’t be back to purchase their next vehicle for 5 to 6 years.

[BradleyBoardwine]

I have a family member that is in love with getting new cars. She has constantly traded in and rolled negative equity over. She’s owned 8-10 cars this past year alone because she “wasn’t happy” with the one she bought. Countless times she had to be bailed out of a situation. I vowed to never do that

[travelingfool]

Wow, very refreshingly honest video! Liked the stay in your car advice.

[zaneclifton]

Just stumbled upon this channel and I got to say, this is hands down the most authentic video I’ve seen on this subject. Keep up the good work man 🫡

[andrequiroz]

Here’s how you avoid negative equity
- don’t pay over Msrp
- don’t finance longer than 6 years
- don’t buy what you can’t afford

[richardsmith]

The biggest way to avoid negative equity was not to buy in the past year or so. There will be so many people under water once the prices go back to normal.

[mikefly]

The easiest way of working your way out of negative equity on a car is to just be patient, and continue to pay down your existing car until you are equal. If you are seeking that new car feeling, then go get your car detailed by a professional. At the end, it will be like a new car. Spending $300-400 on a professional detail is a far better option then buying a new car when you are upside down. If you are in a situation where you need something bigger, assuming it's just for a short term period, then renting a car could be an option.

[mqisrrj]

Thank you Dave for good advice. I have a terrible experience in a car dealer ship, First when we came into the showroom we just want to inquire a Nissan pathfinder 2023 but we are denied for all banks that they inquired and then sales guy suggest to us to take used car Infinity qx60 2020 and he told us that after 8 months we trade in for new pathfinder and "I believe" him. I fond out that the trade in value of the infinity qx60 are very low as of now. First of all I want a brand new car doesn't matter if sedan or SUV as long as it is brand new. Me and my wife go to another car dealer ship and we want to trade in the infinity we have a negative equity. As of now we have $39, 000 owe to the bank and the trade in is $21, 000 so we have $18, 000 negative equity and what happen we are denied again to finance. We went to two of car dealer still we are denied. What is good advice can you share with me in this situation? Thank you