How Do You Get Out of a Negative Equity Auto Loan?
Negative equity in an auto loan occurs when the vehicle’s market value is less than the remaining loan balance, creating challenges in selling or refinancing. Options to resolve this include paying the shortfall in cash, making extra principal payments to build equity, refinancing at a lower rate, or selling the vehicle while covering the lien difference. Effective management requires understanding the exact payoff amount and exploring tailored solutions.