Stuck in an Upside Down Car Loan? Here's How to Get Out

Negative Equity: Your Car’s Value vs. Your Loan Balance

Are you upside down on your car loan? You’re not alone. According to the latest Edmunds.com 4Q 2024 Used Vehicle Market Report, negative equity is on the rise:

• 24.9% of trade-ins toward new car purchases had negative equity, up from 20.4% in Q4 2023.

• The average owed on upside-down loans reached $6,838, up from Q3 2024's record $6,458.

• 24.6% of vehicle owners with negative equity owed $10,000 or more, an increase from Q3 2024.

• 8.5% of vehicle owners with negative equity owed $15,000 or more, up from Q3 2024.

Understanding Negative Equity

Negative equity means you owe more on your car loan than the car is worth. But don’t panic - there are solutions. Let’s explore your options.

Common (But Less Effective) Solutions:

1. Keep making payments, or make extra payments, or refinance your loan - often not practical.

2. Trade it in - usually the worst option, as the trade-in value is the lowest for your car..

3. Sell it privately - better than trading in, but comes with risks and hassles.

A Smarter Option: Retail Consignment:

Retail consignment offers a better way to maximize your car's value, reducing or eliminating negative equity without the headaches of private sales.

Why Choose Retail Consignment?

• Unlock your car's true retail value without the risk and effort of selling privately.

• Benefit from the expertise, safety, and convenience of using one of our vetted network dealership to sell your car for you.

How to Calculate Your Negative Equity

1. Contact your lender to get your current loan payoff amount.

2. Determine your vehicle’s value, by selling option, a) Trade-in, b) Private sale, and c) Retail, using free pricing guides (NADA, Kelley Blue Book, TrueCar, Others).

3. Subtract the vehicle’s values from your loan payoff to see your equity position by selling option.

Example Calculation: 

• Loan Payoff:  $15,000
• NADA Average Trade Value: $12,000
• Private Sale Value: $13,500
• Retail (Dealer Consignment): $15,000

Negative Equity by Selling Option:

• Trade-In: $3,000
• Private Sale: $1,500
• Retail Consignment: $0

Are you ready to eliminate negative equity or maximize your resale value? Start with Retail My Ride today.

How to Use Retail My Ride: Two Easy Steps

Use Retail My Ride to Get Connected with one of our trusted network dealerships specializing in selling your type of vehicle on consignment.  Then, schedule a date to take your vehicle to the dealership to discuss their specific program requirements, and obtain a free, no-obligation appraisal.  All types of vehicle type are accepted on consignment, including Cars, Trucks, SUVs, Vans, Classics, Exotics, Antiques, Custom/Mods, Commercial, and Mobility Vehicles.

You can also contact one of our consignment experts directly at Retail My Ride before being connected to your local network dealership.

Ready to Pocket More Money?

Get Connected

Contact Us: True Consignment Experts

Email us at:  [email protected]

Call us at:  833-795-2277 (CARS)

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