Than it’s worth, you’re upside-down on your car loan if you owe more on your car. (But there are methods to obtain down from under that loan. ) Becoming upside-down on your own vehicle can occur for a few reasons.
Exactly exactly How it takes place
On it the minute you drive off the lot due to depreciation if you buy a brand new car and finance the entire thing, you’ll be upside-down. This is a problem that is big you wreck the vehicle. (Trouble for the reason that situation could be precluded by buying space insurance coverage through the get-go. )
But trade-ins are another reason that is big become ups