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Dealership Buying - Paying Over MSRP Is Finally Catching Up to Them

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In this 26 October 2024 video, host Michael Bordenaro looks into car loans which are underwater. 

According to the car comparison site Edmunds, almost a quarter of Americans, or 24.2%, are upside down on their auto loans. That means those people will get no money when they trade their car in and actually owe money in addition to having to pay for a new car purchase.

Being upside down on a car loan means you owe more on the loan than your car is worth. Selling your car or paying off the loan early are the two main ways to get out of an upside-down car loan. Trading in your car, refinancing the loan, or surrendering your car will not help you get out of an upside-down car loan.

Your monthly auto loan payments should not exceed 10 to 15 percent of your pre-tax take-home salary. Due to increased vehicle incentives, drivers may find relief when shopping for a vehicle this year. To secure the best deal, work to improve your credit score and consider making a sizeable down payment.

https://youtu.be/zRlu-eBiTLI



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  • Anonymous

    Car dealers have relied on the stupidity of customers for at least 3 years. By rights, every dealer should now be out of business because they were unable to sell any of their overpriced crap. But Here Come the stupid people willing to be upside down on their car loan on the very first day. This is almost comical.

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