I’ve seen quite a few videos about “rolling negative equity” and didn’t even know it was a thing. Also, you hear someone threatening the car dealer for suggesting they buy a car for ONLY $20K when he’s never been seen something in less than a beamer and being in debt so they have to take a loan for the down payment (which doesn’t even make sense to me)… I hope these videos are fake 😢
The first time I heard about rolling negative equity I gasped audibly.
Cars are a depreciating asset unless they’re very rare. They’re always going to have negative equity. This is financial flim-flammery disguised with fancy corpo words.
Negative equity just means you owe more on something than it’s worth. So whether you have negative equity on a car loan is a “it depends”. On a new car, probably yes because of the big deprecation hit as soon as the car is driven off the lot, but on a car where the loan is almost paid off probably not.
I’ve seen quite a few videos about “rolling negative equity” and didn’t even know it was a thing. Also, you hear someone threatening the car dealer for suggesting they buy a car for ONLY $20K when he’s never been seen something in less than a beamer and being in debt so they have to take a loan for the down payment (which doesn’t even make sense to me)… I hope these videos are fake 😢
The first time I heard about rolling negative equity I gasped audibly.
Cars are a depreciating asset unless they’re very rare. They’re always going to have negative equity. This is financial flim-flammery disguised with fancy corpo words.
Negative equity just means you owe more on something than it’s worth. So whether you have negative equity on a car loan is a “it depends”. On a new car, probably yes because of the big deprecation hit as soon as the car is driven off the lot, but on a car where the loan is almost paid off probably not.