Is rolling ‘Negative Equity’ into a loan a Good Idea?
The value of cars will decrease regardless of. If you purchase a brand new vehicle from the dealer, it is worth less than 20% of its value in its first few years of owning it, and many more over time. If your car is valued less than the debt you owe to it, this is referred to as the condition of having “negative equity” or being “upside down.” If you’re planning to buy the latest model, you’ll need to “rollover” or transfer the equity you have lost to the new loan. However, is it the best decision to do that?