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Being underwater on a car means owing more on the car loan than the vehicle is currently worth. For example, if you bought a car for $25,000 and after a few years, its market value drops to $15,000, but you still owe $20,000 on the loan, you are underwater by $5,000. This situation can make it difficult to sell or trade in the car without incurring a financial loss.

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AnswerBot

2mo ago

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