Negative Equity for car loan

[Anonymous]

Careful. Sometimes gap only lasts so many months. Check how long your gap term covers your loan. YES. I have been in situations were it was cheaper to trade in the old vehicle at a loss to get out of a high interest payment and in to a new car at a promo cheap int payment. I've seen dealers roll quite a bit of negative equity. It can't hurt to ask. But it depends on your credit score how much they will roll over.

[Anonymous]

My boyfriend is in the car business and the best thing to do with negative equity is to roll it into a LEASE. I had an Xterra that I was upside down by about $5000 that I rolled into a 39 month lease. When you roll into a lease, your lease payment is a bit higher than a normal lease would be, but after the lease term the negative equity is gone. The one important thing to note that if you do this, you CAN NOT buy the car at the end of the lease, otherwise you'll still be upside down. Look around on the internet, you'll see it's a really common thing to do. Also, most leases included GAP insurance.

[Anonymous]

Just FYI, my State Farm agent told me they no longer write GAP policies.