It’s so common today that you might be
upside-down in your car, meaning you owe more on your car than what it’s worth.
This has really come about because of people taking on really, really long car
loans. It’s not unusual anymore for someone to take out a car loan for 72
months, even 84 months, occasionally I’ll hear from somebody
who’s taken out a loan of 96 months, so there you are owing more
on the vehicle than what it’s worth the entire time you have that loan.
So what do you have to do? You drive that vehicle till the wheels fall off! You
have to keep driving it, you buried yourself in a hole by taking out a long
loan and don’t believe anybody at a car dealership who says they’re gonna be a
magician and they’re gonna take that negative equity and they’re gonna roll it
into another deal, because guess what that does, that buries you even further
in debt! So accept that it’s not a good idea to be upside-down in a car. Take the
bitter medicine pay it out over those months or years and then after that,
remember from that point forward you’re driving basically for free.
Drive it till you have to leave it by the side of the road. The longest car
loan I ever want you to take out is 42 months, if you go longer than 42 months
you’re gonna bury yourself upside-down! You find out what a payment will be on a
vehicle you really are lusting after, then what it will be for 42 months that
means you don’t buy that vehicle or you buy it as used as you gotta.