What Is Negative Equity in Used Chevy Cars?

With great cars like Chevrolet models, drivers of used Chevy vehicles don’t usually have to worry about negative equity. However, it’s essential to understand this financial issue, how to avoid it, and how to fix it. Casey Chevrolet is here to help you stay on top of your lease and loan payments so you can prevent negative equity.

Understanding and Avoiding Negative Equity in Used Cars

Negative equity is often referred to as “upside-down” or “underwater.” It means you owe more than your car is worth. In the worst-case scenarios of your vehicle being totaled in an accident or unable to make monthly payments, negative equity means you’d lose both your car and the difference between what you owe and what the vehicle is worth.

Fortunately, there are ways to avoid this and build positive equity in your used Chevy model. These include:

• Research the vehicle’s estimated value before signing any lease or loan paperwork
• Opt for a financial package with a shorter lifespan
• Keep up with monthly payments, paying a little extra where you can

How to Fix Negative Equity in a Used Chevy Vehicle

Getting out of the negative and into the positive is crucial for your financial health. If your car already has negative equity, start by making extra or larger payments to reduce the gap between what you owe and what the vehicle is worth. Or, consider refinancing into a shorter loan term that you can pay off more quickly.

Finance Your Used Chevy Model in Newport News, VA

We believe that everyone deserves to drive their favorite model without financial burden. When you’re ready to buy or lease a used Chevy vehicle, come to our Newport News, VA Chevrolet dealership. We’ll help you get a financial package that can help you avoid negative equity!