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Very southern Mn | If you pay cash for it or borrow on current car without still having to pay an upside down loan on one you are trading in, yes it may still be upside down for a period of time meaning it dropped more than the cost per mile over life of car. Buying a new or newer vehicle may or may not be a good business decision, deciding you need to buy a new one, and having a vehicle that brings no equity to deal but more debt is a big difference. So you are saying I want a new car worse than I want some kind of security in my life and in essence you are paying on two cars rather than 1 because you are still paying on the one you are trading in. Examples are a guy goes to a dealership and dealer appraises car. You find out car is worth 14000 but you have 20000 against it. So rather than going home and keep making payments on car you have, you trade it on a new car. So dealer does trade for a 50000 car, put alittle down and go home with a new car that now has 55000 against it. ( 1000 down) . The new car probably depreciates $5000 on its own, so now you are down $10000. Once again if you decide to get yourself out of a bad decision you make the payments on the car for the 8 years or whatever you will eventually get out of the hole. BUT most don’t wait the 8 years and transfer negative equity once again. There wouldn’t have been the endless cycle of overpaying interest if someone had made choice to drive what they could afford in the beginning.
Edited by jdironman 8/2/2026 13:35
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Car loans
