Eliminate Negative Equity on Your Car Loan

Negative equity—being "upside down" on your car loan—is a problem many car owners face, especially if they bought a vehicle during the pandemic when prices were sky-high and long-term loans were the only way to make payments manageable. If you’re struggling with this issue and wondering what to do, I’ve got a solution that could help you clear out your negative equity in just a few years. Let’s break it down.

How Do You End Up with Negative Equity?

There are two main ways people find themselves in this situation:

1. Zero Down, Long-Term Loan

   • You bought a car without a down payment.
   • You financed the full price, including taxes and dealer fees, over a long-term loan (72+ months).
   • As time passed, the car’s value depreciated faster than you could pay off the loan, leaving you upside down.

2. Rolling Over a Previous Loan

   • You traded in a car you still owed money on.
   • The dealer rolled that remaining balance into your new loan.
   • If your previous car was worth less than what you owed, that debt followed you into your new loan.

Either way, you now owe more than your car is worth, making it tough to trade or sell.

The Best Solution: Leasing a New Car to Wipe Out Negative Equity

To make this strategy work, you’ll need:
✅ Good credit (700+ is best, but a cosigner can help)
✅ An open mind about leasing

Here’s how it works:

• Let’s say you’re $5,000 upside down on your current loan.
• You lease a new car, rolling the negative equity into the lease.
• Instead of stretching out that debt for another 5-6 years, you’ll pay it off in just 3 years.
• At the end of the lease, the negative equity is gone, and you can walk away or get another car without carrying that debt forward.

Real Example: How This Works

We ran the numbers on a 2024 Subaru Crosstrek Premium, a $31,000 vehicle.

• A standard 39-month lease at 12,000 miles per year would cost $426/month with zero down and no negative equity.
• If you roll $7,000 of negative equity into the lease, the payment increases to $643/month.
• That’s about $200 extra per month to eliminate $7,000 in negative equity in just 3 years.

🚨 Important Note: If leasing isn’t your thing, you can always pay extra on your loan to reduce negative equity faster. But if you need a new car AND you’re upside down, this strategy could be your best option.

Is This the Right Move for You?

This isn’t the only way to deal with negative equity, but it’s one of the most effective. If your current car isn’t working for you anymore and you’re looking for a way out, leasing a new vehicle with this strategy might be the key.

📢 Have questions? Need help running numbers on your situation? Contact me at SpringsAutoSearch.com or give me a call! Let’s find the best way to get you back on track.

This blog keeps the conversational tone from your video while making it easy to read and digest. Let me know if you want any tweaks! 🚗💨