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Calculating negative equity

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Calculating negative equity

I feel dumb for having to ask this question, but it’s my first time dealing with negative equity and I’m not quite sure of how the calculations work and want to make sure my ignorance isn’t taken advantage of at a dealership.

I was pre qualified by Capital One Auto for $30,000. But my current loan holds negative equity.

So let’s say my current loan 10 day payoff is $8,500. My cars value is $6,000, leaving me with $2,500 in negative equity. When building an offer on Auto Navigator when it asks for trade in value and the amount left on the loan, do I put the trade in value and for remaining loan balance as $2,500 which will be the amount rolled over or do I put the entire loan balance, $8,500, in the remaining loan balance?

I know it’s a weird question, but like I said I have never dealt with it before and wasn’t sure.
Message 1 of 3
2 REPLIES 2
Valued Contributor

Re: Calculating negative equity

You would use the entire loan balance

Ch 7 Discharge 3/12/2018
Cap One QS1 $3,500, Wayfair $5,000, Blaze MC $3,000, Kohls $500
Infiniti Financial lease

AU Cards: CSP $40.7k; Chase Marriott $20k; Discover $7.8k; CapOne Venture $30k
Message 2 of 3
New Member

Re: Calculating negative equity

I thought that made sense, but wasn’t quite sure which way it went. Thank you so much!
Message 3 of 3
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