Vehicle equity

The current value of your vehicle after adjusting for the amount of your loan. This is calculated by finding the difference between the loan amount and the wholesale value of the car. Good or positive equity means your car is worth more than the total of any loans held against it. Not good or negative equity means your vehicle is worth less than the total of all loans against it. This is also referred to as "upside down". People who put little or no money down, finance for 5 years and attempt to trade in the vehicle during the first 3 years often end up with a negative equity situation.

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