Episode Show Notes / Description

🔹 Troubling Trends in the Auto Market

• 25% of trade-ins toward new car purchases have more than $10,000 in negative equity (according to Edmunds).
• Negative equity means you owe more than your car is worth—a growing issue for car owners.

🔹 How Negative Equity Adds Up

• Historically, negative equity was around $1,000 - $2,000 but has now skyrocketed.
• If you owe $30,000 on a car only worth $20,000, the $10,000 negative equity rolls into your next car loan.
• This makes new car payments even higher and adds more financial strain.

🔹 Options to Escape Negative Equity
✅ Avoid trading in with negative equity – It adds debt to your new loan.
✅ Avoid voluntary repossession – This leads to a deficiency judgment.
✅ Consider a car short sale – A method to sell your car for less than you owe with lender approval.

🔹 How a Car Short Sale Works

• Work with your lender to file necessary documents (e.g., evaluation report, sale affidavit).
• Many lenders prefer short sales over repossessions as they recover more value.
• Some lenders may waive part of the negative equity or allow you to pay off a smaller portion in installments.

🔹 The Cost of Carrying Negative Equity

• If you roll $10,000 of negative equity into a new loan at 10% interest, you’ll pay $1,000 extra per year in interest alone.
• A short sale can help you avoid paying full interest on negative equity.

🔹 Need Help?
📌 Click the link below to start the car short sale process.
📌 Book a live consultation with a certified title expert for personalized advice.
📌 Have questions? Drop them in the comments!

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