How to Get Out From Under Your Upside-Down Loans

Car loans are a tricky business. Your car is a continually depreciating asset, and the more you use it, the faster the vehicle depreciates in value. The consistent drop in value complicates matters when you take out a car loan, and the payments you make don’t keep pace with the depreciation rate. Once your car’s value is less than your loan’s outstanding interest, then your loan becomes an upside-down loan.  

Upside-down auto loans frequently happen on loans with longer lengths of terms. While the monthly payments may be lower, keeping pace with the depreciating value of your car can prove challenging. Your options for dealing with an upside-down loan are limited, but there are ways to get out of your predicament.

Getting the maximum value out of your auto loan generally leads you to one of two options. The first option is to ride out the loan’s lifetime and deal with the depreciating value of your vehicle. If you decide to sell the car before you finish the loan, you will lose money due to the negative equity. However, there is another way out of the upside-down loan. Once you trade-in your car, auto dealers will buy out the remainder of your loan balance. Peruzzi Nissan will help you get into a new car and out from under your upside-down loan if you’re in Langhorne, PA or the surrounding area. 

Our finance department will work with you to buy out the remainder of your upside-down loan. We work with you to make the process as seamless and straightforward as possible. Finding the right options after an upside-down loan can help you better handle your next investment. Potentially considering a less expensive car will make the new payment plan more feasible over the long term. 

Choosing Peruzzi Nissan for your next car can help ease the stress that comes with buying a new car. We have financing options available for Langhorne, PA, and beyond to help get you out from under your upside-down car loan. Contact our sales representatives today at (877)-580-8282 to get started!

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