Overhaulin'

what does it mean to be "upside down" on a car loan with a trade in?

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1. say u owe 10,000 on ur car and the car is worth 5,000 ,,,u r upside down.
2. It means you are like most people who buy vehicles on long term loans with little down. If you trade in a vehicle and it is worth less than what is owed to the bank you are "upside down", you will then either pay the difference of worth and loan value or make the mistake of rolling in this difference to the new loan making you immediately upside down with you new vehicle repeating the cycle
3. It means your ganna have to owe more than $6,000. Good luck !
4. Also known as negative equity, refers to owing more on a loan than the value of the asset for which the loan was used to purchase. Upside-down loans occur when the asset depreciates in value, or was overvalued when the buyer purchased the asset. For instance, given that most cars rapidly depreciate in value, it follows that getting a long-term loan on a car with little or no down payment can usually leave you in a position where you are "upside-down", i.e. owing more money than your vehicle would be worth if you sold it. In the case of holding a mortgage for a house, a property owner can be left "upside-down" in the short term if the price of property declines or was overvalued at the time of purchase. However, given modest inflation, this difference in price will gradually decrease over time. (assuming that loss of value due to deprecation of the property's structure does not offset the price change due to inflation.)
5. In simple terms it means you owe more on the loan than the car is worth.
6. You've already gotten some good answers but remember that if you let the dealer talk you into rolling your negative equity into a new car, you'll be even more upside down in the new car, which will make it even harder to sell or trade again in the future. It's a cycle that you don't want to get yourself into because it usually gets worse every time you do it.
7. it means you owe more than your car is worth so you will have to add on whatever the dealer wont give you for it into your new loan. if you want to trade it in find a previous year model (07 with lots of rebates)