Negative Equity Explained

Published February 1, 2021

Key Takeaways

  • When financing a vehicle, negative equity occurs when the value of the vehicle is less than the payoff

  • You can roll negative equity from financing into a lease and eliminate the negative balance at the end of your term

You May Also Be Interested In

Did You Know?

6 Moves That Will Help You Retire Early

Get Started

What's the difference between banks and credit unions?

Learn about it