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How to handle an upside-down car loan



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It's so common today that you might be upside-down in your car, meaning you owe

more on your car than what it's worth. This has really come about because of

people taking on really, really long car loans. It's not unusual anymore for

someone to take out a car loan for 72 months, even 84 months,

occasionally I'll hear from somebody who's taken out a loan of 96 months,

so there you are owing more on the vehicle than what it's

worth the entire time you have that loan. So what do you have to do? You drive that

vehicle till the wheels fall off! You have to keep driving it, you buried

yourself in a hole by taking out a long loan and don't believe anybody at a car

dealership who says they're gonna be a magician and they're gonna take that

negative equity and they're gonna roll it into another deal, because guess what

that does, that buries you even further in debt! So accept that it's not a good

idea to be upside-down in a car. Take the bitter medicine pay it out over those

months or years and then after that, remember from that point forward you're

driving basically for free. Drive it till you have to leave it by

the side of the road. The longest car loan I ever want you to take out is 42

months, if you go longer than 42 months you're gonna bury yourself upside-down!

You find out what a payment will be on a vehicle you really are lusting after,

then what it will be for 42 months that means you don't buy that vehicle or you

buy it as used as you gotta.