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5101 SE Federal Hwy, Stuart, FL 34997
Sales: (888) 322-1193 | Service: (888) 722-4320 | Parts: (855) 997-1225

What is Negative Equity


What is Negative Equity?


There are two positions in which you are situated with your trade.  1) You have equity in your vehicle as its value exceeds its payoff or it is already paid off entirely.  The residual amount that is leftover after paying off your loan is then applied to your new loan or final cash difference.  2) You have negative equity because the value of your car is less than its payoff.  This can happen for a couple of reasons.   It happens when significantly high milage is put on a vehicle that is financed, when a vehicle sustains damage that is beyond normal wear and tear, when trading frequently and when a vehicle has a low residual value from inception.  


What can you do?


Three things.  1) Roll the negative equity onto the next loan.  This will affect your monthly payment but it will give you a chance to pay it off over time.  2) Make your trade whole by putting money down to balance the difference.  3) If a qualified representative has informed you that because of your negative equity the exchange would exceed the payment or overall deal you are trying to achieve (for instance, if you have negative equity that totals to 50% - 70% of the amount of the new vehicle you are applying to finance) then perhaps you should consider waiting until you have paid the debt down enough to try again. 

Payoff of Your Trade:   $10,000
Value of Your Trade:   $8,000
Cash Difference:   -$2,000



Dealer Information
Treasure Coast Toyota 5101 SE Federal Hwy Stuart, FL 34997 Get Directions
Sunday:
11:00 AM - 5:00 PM
Monday:
8:30 AM - 8:00 PM
Tuesday:
8:30 AM - 8:00 PM
Wednesday:
8:30 AM - 8:00 PM
Thursday:
8:30 AM - 8:00 PM
Friday:
8:30 AM - 7:00 PM
Saturday:
8:30 AM - 6:00 PM
Sunday:
CLOSED
Monday:
7:00 AM - 6:00 PM
Tuesday:
7:00 AM - 6:00 PM
Wednesday:
7:00 AM - 6:00 PM
Thursday:
7:00 AM - 6:00 PM
Friday:
7:00 AM - 6:00 PM
Saturday:
7:00 AM - 4:00 PM
Sunday:
CLOSED
Monday:
7:00 AM - 6:00 PM
Tuesday:
7:00 AM - 6:00 PM
Wednesday:
7:00 AM - 6:00 PM
Thursday:
7:00 AM - 6:00 PM
Friday:
7:00 AM - 6:00 PM
Saturday:
7:00 AM - 4:00 PM
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