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When upside down in a car loan how much more do you pay on a trade in?
Wiki User
∙ 11y ago
If you are upside down with your car loan, meaning you owe more on it than what it is worth, you will need to pay the deficiency. That means if you owe $11,000 on your car and it is worth $9,500, then you will need to come up with $1,500 to erase the deficiency.
Keep in mind that this may only be the first step. You may also need to come up with a down payment on top of paying the loan deficiency. If you do not put money down and are still approved for a car loan, then you will find yourself upside down with your new car.
Wiki User
∙ 11y ago
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Can they sell your house if you owe more than its worth to pay a loan off?
If you're upside down, they will look to you for the difference after.
How many years should it take to pay off a 30000 loan with a escrow account?
There are a lot of loan calculators out there where you can see what the loan will actually cost in terms of interest over time. Bankrate.com is a good one. If the thing you are buying will be old in six years, you certainly wouldn't want to have the loan extend beyond that time. Cars are a good example: put enough down so that you won't be "upside down" or owe more than the car is worth for a long time during the loan payment.
What does being upside down on your car loan mean?
A car loan (or any loan) is upside down when you owe more on the loan than the car (home, boat, etc) is worth.More Information:When you go about securing a car loan the vehicle itself is used as the collateral on the car loan which is what makes the secured car loan itself. The car finance company online that you end up going with will then loan you the finances for the car based upon the cars current value at the time of the loan based upon the loan value of the car. This loan value will usually be about seventy five to eighty percent of the actual retail cost of the car itself. There is an answer to why this is the case and that is simply because one year after you drive a new car off of the car lot the value of it lowers to that amount which is called depreciation. The car finance company online that you go with will want to make sure that the car loan they are giving you will cover this so that the overall end result cost of the car loan is equal to or less than the value of the loan itself. This is to ensure that they will be able to make a profit if they wanted to sell the car if they were to ever go about having to take it away from you for nonpayment at some point.An upside down car loans online is when a car balance is worth more than the value of the loan that is on it. Another way of putting it is that the car itself is not worth the amount of the loan. In order for you to ever go about selling the car back or if you were to ever go about trying to trade it in you will find that you are going to have to pay the difference of the car value in cash in order for you to be settled up with the car loan company. This is a very bad thing to find yourself into because even with great credit you can have a car loan lender approve you for the full amount of a car loan but as a result of that you could end up owing a lot more then you should for several years because you are always trying to pay down more of the balance then the car itself ends up being worth until you end up paying off a car to the value that it really is. Another problem with having this happen is that if you have car insurance it only will cover the cost of the book value on your car so in the event that you get into a major accident or if perhaps your call was stolen then you very well may end up being forced to pay the difference in cash.This is something that you are going to want to make sure that you remember when you go to buy a new or used car online. You should make sure that you are going to stick with it for a while and that you do not over finance the worth of the car or you could end up in a really bad process where the end result is you paying a lot more money then you should be paying. You can avoid these things so long as you do the proper research and plan out carefully the car itself as well as the car loans that you go about getting for this car. The other thing that you are going to want to be aware is that a car loan company may entice you with very low car loan rates in order to get you to end up financing more on the car than you should. You should only take these sorts of options if you are lucky enough to have the cash in hand to pay for something should the situation ever occur otherwise do not take the risk unless you understand fully what you may be getting into before this happens.This is not rocket science in order to make sure that these things do not happen to you and your car loan so long as you are capable of following a few bad credit upside down auto loan guidelines online itself. The first thing that you are going to want to try and do is put down as much money as possible on your initial deposit on the car itself. The more money that you put down the less that you are ultimately going to need to pay and the less that you actually owe. Try to take out a car loan with the short length car loans term as your budget sees fit. The longer the car loan term the less the monthly payment but the more money you will end up spending due to the car loan rates, so as a result of that try to find yourself a good middle ground. Make certain that you do not add in the taxes and the additional fees to the car loan itself. You want to make sure that the car loan is for the total value of the car itself because this is all that matters. If you are able to pay more than the monthly minimum payment each month then do so. The more money you can pay off of the principle on the car loan the quicker you will be paying it off and less money you will be spending on paying off interest. If you have any sort of refinance upside down car loans on another vehicle make sure that you pay it off first before you go about getting another car loan. Simply make sure that you are not paying more than what the vehicle is worth in the first place so do your homework to avoid that one. Make sure that the car that you are getting a vehicle loan for falls into the budget that you have to spend each month. Try to hold onto a car for at least a couple of years because the first couple of years on your car loan the monthly payments that you are making are for the most part going towards the interest on the loan itself.Whatever choice that you make when it comes to get any upside down auto loan it is really a matter of doing all of the research that needs to be done in order to make sure that you do not make the mistake of falling into an upside down auto loans online. This research while at times may seem tedious or boring could help you avoid a huge mistake down the line that could negatively impact not only your finances, but your credit as well.
Can you refinance a car loan?
Even the most experienced of borrowers and financial mavens may not realize that the term "refinance," commonly used in conjunction with home mortgages and lenders, can also be applied to car loans. More importantly, yes, you can refinance your car loan in an effort to get yourself a better interest rate, a lower monthly payment, or possibly both. The only thing that is essential is that most lenders will require that you don't have an upside down auto loan (owing more than the vehicle is worth). If you do decide refinancing your auto loan is not the right choice for you, consider paying off your loan quicker, which will essentially reduce your interest rate.
What companies offer a no money down loan?
Some companies that offer a no money down loan include LGI Homes and Madison Mortgage Guys. You can read more information about these companies on their official websites.
How do you spell upside down?
Main Entry: backward Part of Speech: adverb Definition: Toward the back. Synonyms: about, around, back, rearwardMain Entry: back Part of Speech: adverb Definition: In or toward a former location or condition. Synonyms: about, around, backward, rearward, round If you mean going backwards like a car, "reverse" is the word you are looking for.
Can they sell your house if you owe more than its worth to pay a loan off?
If you're upside down, they will look to you for the difference after.
If a bat spends more time upside down than not upside down and it sleeps upside down are it's dreams also upside down?
Dude are you serious? And probably not
How do you get out of a car loan in which you are upside down?
You can trade it in for a cheaper car and put the remaining balance on the new loan. There is really no way to get out of it, I was in that mess for awhile. Most lenders will do an 'over advance (110%- to 140%) . So you do not have to trade down to cheaper and often trading up is easier. If you are buying a new car, sometimes the rebates can 'cover' your loss. 110% of a 30, 000. dollar auto is a lot more room than 110% of 10,000.
What can be done if a dealership went bankrupt several months after purchasing two vehicles now they are upside down and no one will take the cars for trade in?
Sorry but the loans were upside down the minute you signed the loan papers. Pay off the loans.AnswerThe dealership should have nothing to do with the trade-in value of the car.The trade-in value is determined by market prices--not what you paid or what dealership.Others will take the car as a trade-in for what it is worth, but you will still owe more which you can tack onto a new vehicle sometimes (but not smart) or have to pay off the loan.Selling it to a private party would be your best solution but it is time-consuming.
When trading in a car that you most recently bought where does that loan go Does it get added to your new car loan or if the new car you want is a more expensive car do you only pay the difference?
You pay both loans. My advice! Pay off your existing loan before purchasing another vehicle. Talk to you bank's loan officer for more information. When trading in a car the dealer agrees to pay off the old loan as much as the vehicle is worth and valued to them, many times any difference between what you owe and what they will give you is added to the new vehicle loan. It happens a lot and puts you in a serious upside down condition meaning now you owe much more on the new car than it is worth and it will be a few years before you start to gain on the deficit. When the car is a recent purchase you will most likely be upside down still unless you put a large amount of money down, it is the difference between the retail price of the car which is what you pay and wholesale or trade in value which is what a dealer will give for it, this allows them to make a profit. With work and a good down payment you can work the trade in value up, and the new car price down during negotiations to offset the difference.
Where can you get upside down goggles?
More information on this site: http://www.invertoscope.ru this device is invertoscope = upside down goggles and invertig spectacles
Are You Upside Down on Your Car?
Being upside-down on a car loan, means owing more on the loan than the trade-in-value of your car. As you owe more than your car value, even selling your car for payment could not help, so you are stuck with the car and the payments. Upside-down on your car loan is not a problem until you don't want to change your car while making timely payments and you have auto insurance in case of accident. Quite a lot of people experience this situation for the simple reason of not choosing loan terms and type of car wisely while applying for a car. Depending upon the age of the car, some cars will depreciate early. Thus it is necessary for one to consider the car loan terms in accordance to the type and value of car. For instance, if a person has car loan amortize period more than five years, than probably you owe more interest than the value of car as most of the monthly payment goes toward paying off interest amount. Same is the case with people having bad credit as they are forced to accept a higher interest rate while buying a car and as a result a whole lot of their dollar goes in paying up only the interest amount while leaving the principle as it is. Although there are quite a few option available if you are in this situation. Pre-paymentFor the people being upside-down on their car loan, pre-payment could be the smart option to pay off the loan faster. Hence, if a person does not owe much on the loan, he/she can make extra payments each month get rid from being upside down. As making extra payments will help to pay off the loan faster. But before paying any extra payments you need to make sure that your current loan does not have any pre-payment penalties that could restrict you from paying extra cash. Car RefinanceRefinancing upside-down car loan is also a good option for the people as refinancing allows you to redefine your loan terms. Hence through refinancing you can either lower your interest rate or shorten your term period which can ultimately benefit you to get out of upside down situation. In case your lenders do not grant you a traditional refinance car loan you may opt for a home equity loan. These type of secured loans have a low interest rates which not only allows you to pay off your loan quickly but also without spending additional cash. With refinancing you can even shorten your loan term and pay off the loan much faster and do not loose anymore money on the car. Transferring Balance to a New Car LoanFor the people who are looking to replace their car can close the gap of unpaid balance on their current loan and the car's resale value purchase by transferring their unpaid balance of old car on the new car loan and make the lump sum payment for both the car. Thus you can get your new car while being upside down.
Is there a way to trade in your car if you are upside-down on the car loan?
Yes, but the money you still owe (negative equity) must still be paid. Example: you owe $10k on a car and the dealer will only offer you $8k in trade - the $2k difference must be paid. In some cases, your lender or dealer financing will allow you to roll the negative equity into the new payment as long as the loan to value (LTV) does not exceed a certain percentage. Therefore, it is difficult to get into a less expensive vehicle because of the LTV threshold. Dealer advertisements claiming to pay off your trade are simply doing as described above, and this can be dangerous for those with eyes bigger than their wallets.
Can you trade in your car if you still owe on the auto loan?
yes you can trade it in. But if you owe more than what the dealer is going to give you for the car the remaining balance will be added to your new loan
What is an upside - down valve?
You owe more on the car than the car is worth.
How many years should it take to pay off a 30000 loan with a escrow account?
There are a lot of loan calculators out there where you can see what the loan will actually cost in terms of interest over time. Bankrate.com is a good one. If the thing you are buying will be old in six years, you certainly wouldn't want to have the loan extend beyond that time. Cars are a good example: put enough down so that you won't be "upside down" or owe more than the car is worth for a long time during the loan payment.
