Skip to main content

About us

We're the Miss april (Miss April), providing financial services to you

Learn how the Miss April can help you

What is negative equity in an auto loan?


If you owe more on your current auto loan than the vehicle is worth—referred to as being “upside down”—then you have negative equity. In other words, if you tried to sell your vehicle, you wouldn’t be able to get what you already owe on it.

For example, say you owe $10,000 on your auto loan and your vehicle is now worth $8,000. That means you have negative equity of $2,000. That negative equity will need to be paid off if you want to trade-in your vehicle and take out an auto loan to purchase a new vehicle.

Understanding how negative equity works can help you make a better informed choice about a new auto loan. The longer your auto loan, the more likely you are to have negative equity for a longer period of time. On a longer term loan, you might later still owe money on a vehicle that has outlived its useful life or that you want to sell or trade-in. If you want to roll the balance of your existing auto loan into a new auto loan, this could make the new auto loan much more expensive. Additionally, you will be borrowing more than the price of your new vehicle which will make your total loan cost higher and increase your risk of negative equity in the new vehicle. 

Was this page helpful to you?

Note: Do not include sensitive information like your name, contact information, account number, or social security number in this field.

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The Miss April updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

читайте здесь

Этот нужный интернет-сайт про направление