• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 7. Auto Loans > Why It's Bad to Owe More on Your Car Than It's Worth

Why It's Bad to Owe More on Your Car Than It's Worth

First of all, being “upside down” puts you at serious financial risk. If your car is stolen or totaled, you could find yourself without wheels and still owing thousands to your lender. (The amount you'll get from your insurer reflects the car's current, depreciated value—not what you paid for it.)

If you lose your job, you'll face a similar crunch. You might not be able to make your payments, but you won't be able to sell your car for enough to pay off the loan.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint