NEGATIVE-EQUITY CALCULATOR
Find the old debt inside the new deal.
Compare your trade value with its exact payoff, then see what that difference does to the next loan and monthly payment.
02
LIVETrade result
Trade position$0
Positive equity reduces the next balance. Negative equity increases it.
- Estimated amount financed with trade
- $0
- Payment with trade
- $0/mo
- Payment without trade equity
- $0/mo
- Monthly difference from equity
- $0/mo
$0
- Total paid toward it
- $0
WHAT TO ASK FOR
Estimate assumes the full equity amount is applied to the next deal. Verify the trade allowance, payoff, amount financed, and down payment on the contract.
Before trading an upside-down car
Get the exact payoff
A statement balance may differ from the lender's time-sensitive payoff quote.
Separate the numbers
Negotiate the new vehicle price and trade allowance independently so the shortfall stays visible.
Inspect the contract
Find the amount financed and down payment. Confirm exactly where the old balance appears.
Common questions
What is negative equity on a car?
It is the shortfall when the auto-loan payoff exceeds the vehicle's trade value. A $15,000 trade with an $18,500 payoff has $3,500 in negative equity.
Does it disappear when a dealer says it will pay off my trade?
Usually not. The dealer may pay the old lender while adding the shortfall to the new loan or using part of your cash down to cover it.
Why does rolling it over cost more than the shortfall?
The old balance becomes part of the new principal. If it is financed, you also pay interest on that old debt throughout the new term.
Consumer reference: the FTC's negative-equity guide explains how a trade shortfall can be rolled into the next auto loan.