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For the bank to release the title, someone will have to make up the difference.
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∙ 16y ago
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How do you sell your car before the lease is up?
Lease or retail installment loan-dosen't matter. You call your lienholder, get your pay-off and sell your car. If your pay-off is greater than what you are selling the car for, "you" simply pay that "negative equity" to your lienholder. If you sell your car for $15,000.00 and you owe $20,000.00 you have to pay your finance company $5000.00 and you are done. The $5000. is called negative equity.
If there is negative equity on your car when it is repossessed are you responsible for the difference?
It may vary by state, but in most palces you are responsible for the negative equity.
Is there a type of insurance that covers the negative equity on trading in a car?
No
When it comes to equity what does it mean to have negative equity or be underwater?
The amount owed is greater than the car's worth
Is it good if the equity is low or high?
High. Equity is the difference between what is owed and what something is worth. For instance if you owe 5,000 on a car, but the car is worth 3,000 there is a negative equity of 2,000. The less you owe the higher the equity.
How can one determine if the equity on a car is worth while?
The cars equity is worthwhile if it is possible to sell the car without losing too much value from the time of the ownership of the car.
Can you trade your new car for a used car?
Yes. However, you are probably goping to have to cover some negative equity.
How can you trade in a new car for old car if you just bought the new car?
Theoretically, yes. However, you will have a lot of negative equity to cover.
Can you trade in a car you are currently financing?
Absolutely. The only issue will be how much equity you have in the car. In other words, if the car is worth $5,000 and you owe $4,000, you have $1,000 in equity. If the car is worth $5,000 and you owe $6,000, you have $1,000 in negative equity. Be sure to verify your pay-off amount before you begin to shop for a new car.
How do you compute ROE if there is loss and negative equity?
To compute for ROE if there is loss and negative equity, divide the company's net income by the stockholders' equity. A negative ROE does not necessarily mean bad news.
Is there an alternative to repossession or bankruptcy on the 15000 you owe on your car?
If you have equity in it, sell it. If you have a relative who wants the car and has 15k, take the money, pay off the loan and sign the car over to the relative.
How do you sell a car when you are upside down on the loan?
If you have funds to pay off the loan balance, you can sell a vehicle with negative equity. Example: you owe $10k on a car, but the best offer you have is $8k. You must be able to payoff the remaining $2k balance of the loan to your lender to fully absolve yourself of the financial obligations as a borrower. Transfering the title is another matter, and you should reference your state laws.
