Post by @florencebowie

You could owe more than your car is even worth. This is called being "upside down" on your loan, and it happens way more than people think. Your car starts losing value the second you drive it off the lot, but your loan balance doesn't drop nearly as fast. So if you try to sell or trade it in a year or two later, you might still owe more than it's worth. Before you sign anything, check how fast that specific car depreciates. It matters more than the sticker price. Comment ‘Negative equity’ for more videos like this. #PersonalFinance #moneytalk #carfinance