It’s tax season, and your refund could be the perfect boost for buying a used car. With practical and financial benefits, putting your refund toward a used car is a smart move. Here’s why it could be your best decision this year.

Why Consider Buying a Used Car with Your Tax Refund?

Convert Cash into an Asset

A tax refund presents the perfect opportunity to convert “extra money” into a tangible asset. While keeping money in savings might feel like the safer choice, with an average savings account interest rate hovering around 0.05%, parking it there won’t result in financial growth.

On the other hand, purchasing a used car not only gives you access to a reliable means of transportation, but it also provides flexibility. A car is an asset that you can use daily and may serve as collateral for future financial needs, allowing you to take advantage of its long-term utility.

A Solid Down Payment Without Impacting Savings

Used cars are more affordable than new ones, and your tax refund can make a significant dent in your down payment. By putting your refund toward the price of a used car, you’re reducing the balance you’ll need to finance. This translates into lower monthly payments and less interest paid over the life of your loan—all while keeping your primary savings untouched.

For example, averaging a $3,000 down payment on a used car priced at $15,000 can meet or exceed the recommended 20% down payment threshold.

Rising Used Car Market Value

Critics sometimes point out that vehicles are depreciating assets. While it’s true that cars lose value over time, the market for used cars has been uniquely competitive in recent years. Historically, depreciation impacts new cars the most within the first year or two, but current supply chain challenges and increased demand for used vehicles have driven up their value noticeably.

This positive trend in resale values means you could later sell or trade-in your car with a smaller financial hit, making the upfront investment with your tax refund even more strategic.

Save Money Compared to Buying New

The price gap between new and used cars continues to grow. According to industry reports, the average price of a new car exceeds $46,000, whereas the cost of a reliable used vehicle remains much lower—often even 50% cheaper! For financially conscious consumers looking to maximize their tax refund, going for a used car is a no-brainer.

Practical Convenience and Lifestyle Improvements

Aside from financial benefits, having a car can dramatically improve your productivity, reduce daily commuting stress, and open the doors to more opportunities. Whether it means cutting your travel time to work or supporting personal responsibilities, the value-added improvements in your life are equally meaningful.

Steps to Use Your Tax Refund Smartly for a Used Car

When buying a car, start by setting a realistic budget that accounts for more than just the sticker price. Factor in additional costs like insurance, taxes, and maintenance. For financial stability, experts suggest keeping car expenses below 15% of your annual income. Next, research vehicles that meet your needs, prioritizing factors such as fuel efficiency, reliability, and repair costs. Don’t dismiss lesser-known brands or discontinued models, which can offer significant savings—but always check vehicle history reports through services like CARFAX or AutoCheck to ensure transparency.

If you’re purchasing a used car, invest in a pre-purchase inspection by a trusted mechanic to uncover any hidden issues. If your tax refund doesn’t cover the full cost, consider financing options and use your refund as a down payment to lower upfront expenses and secure better loan terms. Most importantly, avoid impulse purchases. Stick to your budget and carefully evaluate the total cost of ownership, including gas, insurance, and long-term maintenance, to ensure your new car aligns with your financial goals.

Reality Check: Invest Wisely Like A Pro

Splurging your tax refund on unnecessary purchases might feel fun in the moment, but spending it wisely will reward you long-term. Using your refund as a down payment toward a used vehicle is more than just a purchase; it’s an investment in mobility, convenience, and financial efficiency.

While a vehicle might technically be a depreciating asset, its practicality and impact on your time and lifestyle make it worth the price.

The verdict? A used car strikes the right balance between financial prudence and a practical lifestyle upgrade.

Start The Engines This Tax Season

With used car prices trending upward, your tax refund can act as the financial boost you need to get behind the wheel of a car that supports your goals and lifestyle. From offering a flexible down payment to enhancing daily productivity, this move ensures you’re putting your hard-earned tax return to good use.

Need help navigating your options? CARMART can help you make the most out of your refund with a wide variety of used vehicles! Contact our financing department or visit today and don’t keep your next adventure (and smarter financial decision) waiting! We look forward to seeing you at our CARMART stores in Delaware.

A new year signals a chance for a fresh start, and while we’re all setting personal goals, don’t forget about your car! Whether you’re focused on maintaining its peak performance or expanding your collection, these five car-related resolutions will have you cruising into 2025 with ease. From better maintenance routines to the thrill of adding another vehicle to your garage, there’s a goal here for every driver to embrace this year.

Keep Your Car Clean

A cleaner car isn’t just more enjoyable to drive—it’s also better for its overall performance and longevity. Consistent cleaning prevents dust and dirt from Damaging interior components, while regular exterior washes help protect your car’s finish from grime, salt, and other roadside contaminants. Wash your car weekly or biweekly, focusing on removing debris that can scratch paint, and finish it off with a protective wax coat. Vacuum carpets and upholstery, clean your dashboard, and use vinyl or leather surfaces protectants. Even wipe down the inside of your windshield to remove that annoying grime buildup. Keeping your car fresh isn’t just about aesthetics—it’s car maintenance 101, and it pays off in the long run.

Learn Simple Mechanics

You don’t need a full toolbox or years of training to handle minor car maintenance tasks. Gaining a basic understanding of your vehicle can help you avoid unnecessary repair costs and be prepared for the unexpected. Know how to check your engine oil, transmission fluid, and brake fluid. Learn to change a flat tire and check your battery terminals for buildup. Familiarize yourself with your car’s owner manual—knowing where essentials like the fuse box or spare tire are can save you in a pinch. Setting time aside to learn these simple tasks empowers you as a driver and ensures you’re ready to keep your car running smoothly.

Drop Bad Driving Habits

Bad driving habits don’t just potentially lead to accidents—they also damage your car and can cost you more over time. For this New Year, commit to kicking these common bad driving habits to the curb. Don’t hog the fast lane; keep it for passing and then move over, reducing unnecessary strain on your engine. Ease up on speeding, as driving at safe speeds saves fuel and wears your engine less. Drive calm, not angry, since aggressive driving eats away at your tires and increases the risk of damage. Driving thoughtfully can prolong the life of your vehicle while also preventing costly repairs or insurance claims.

Prepare Your Emergency Kit

Ever been stuck on the side of the road wishing you had a flashlight or jumper cables? Emergencies happen, so having a well-stocked car emergency kit can be a lifesaver during those unexpected moments. A basic kit should include jumper cables or a portable battery jump starter, a flashlight with extra batteries, a first aid kit, blankets, water bottles, a tire repair kit, an air compressor, and non-perishable snacks. Whether heading out on a long road trip or just navigating harsh weather, this kit ensures you’re prepared for the unexpected.

Spring for That Second Car

Is 2025 the year you finally add that second vehicle to your household? There are plenty of great reasons to make the leap this New Year. A growing family might make your current ride feel too cramped, making it the perfect time to upgrade to a spacious SUV or minivan. If your family has multiple drivers with different schedules, a second car can ease the stress of sharing one vehicle. Or perhaps you need a sturdy truck for towing or an adventure-ready SUV for weekend getaways—now’s the time to find the perfect fit.

Start saving now by visiting CARMART for the best deals on a variety of pre-owned vehicles. Explore our compact cars, sedans, SUVs, and more—our financing department makes it easier than ever to drive away with your dream car in 2025.

Drive Into 2025 with Confidence

This New Year, focus on goals that benefit both you and your car. A little time spent on car maintenance, staying prepared, and even upgrading your garage can make a big difference in how smoothly (and safely) you drive all year long.

Which of these resolutions will you add to your list? Whatever you choose, remember that taking care of your car is taking care of yourself. Here’s to a year full of smooth rides and new adventures!

Thinking of upgrading your car? Trading in your current vehicle is an easy way to lower the cost of your next one. To get the best trade-in value, a little prep goes a long way. A clean, well-maintained car can significantly boost the offer from a dealer. Here’s a quick guide to help you maximize your trade-in value, especially during the busy end-of-year season.

Benefits of Trading in Your Car

Before preparing your car, it’s worth understanding why trading in your car at a dealer is a popular choice:

• Saves Time: Selling privately involves finding buyers, answering questions, coordinating test drives, and managing paperwork, which can be time-consuming. Trade-ins simplify the process.
• Immediate Value: You instantly apply the trade-in value toward your new purchase, often reducing your down payment.
• Tax Advantages: Many states only charge sales tax on the difference between the price of your trade-in and the new car, potentially saving you hundreds of dollars.

Now that you know the benefits, here are the steps to get your car ready for a trade-in.

Step-by-Step Guide to Preparing Your Car for a Trade-In

1. Clean Your Car Inside and Out

First impressions matter, even when it comes to vehicles. A clean car signals that the vehicle is well-cared for, which can make any buyer more inclined to offer a higher value.

• Exterior: Wash your car thoroughly and apply a fresh coat of wax. Don’t forget to clean the tires and rims. A little tire dressing can give your car an extra polished look.
• Interior: Vacuum the seats, carpets, and floor mats. Remove all personal items, and wipe down surfaces like the dashboard and console.
• Professional Detailing (optional): If you want to make a lasting impression, consider professional detailing, but ensure the cost is modest compared to the car’s trade-in value.

2. Fix Minor Issues

Fixing small issues can boost your car’s appeal. Replace broken lights, top off fluids, and consider repairing windshield chips if covered by insurance. Leave major repairs like worn tires or check engine lights to the dealer, but remember they can still impact trade-in value.

3. Conduct a Quick Inspection

No matter your intention, always do your own inspection to understand your car’s condition.

• Exterior: Walk around your car to identify dents, scratches, and scuffs. While minor dings are fine, you should be aware of how they impact value.
• Mechanical health: Take your vehicle on a short drive to ensure components like brakes, steering, and engines feel smooth.
• Interior gadgets: Check that all electronics, including the radio and air conditioning, are in working order.

Creating a list of the car’s imperfections will also help you estimate its trade-in value more accurately.

4. Gather All Essential Documents

Dealers will give you a higher value if you can demonstrate that your car has been properly maintained. Collect the following documents before visiting a dealer:

• Service Records: Proof of routine maintenance like oil changes, tire rotations, or brake replacements. Organizing these records in a folder labeled “MAINTENANCE” makes a strong impression.
• Vehicle Title and Registration to confirm ownership.
• Warranty Information (if applicable): If any part of your car is still under warranty, provide proof.

5. Include All Accessories

Make sure to bring any items that originally came with the car, as missing pieces can impact the trade-in offer. These include spare keys, additional floor mats, navigation system DVDs or SD cards (if applicable), and the car manual for the glove compartment.

6. Determine Your Car’s Value

Knowing your car’s market value is key to setting expectations and negotiating. Use tools like Kelley Blue Book or Edmunds for a trade-in estimate, factoring in imperfections like worn tires. Don’t forget to check for trade-in promotions, especially during end-of-year sales.

7. Keep Negotiations Separate

When talking to the dealer, avoid combining trade-in negotiations with the purchase price of your new car. Negotiate the trade-in value as a standalone transaction to get the best deal. Once that’s finalized, focus on the price of your new car.

What Not to Do

• Don’t Overspend on Repairs: Major repairs (e.g., replacing the transmission or suspension) are often not worth the cost. The dealer will lower the trade-in value to cover these repairs anyway.
• Don’t Wait Too Long: Cars depreciate over time. Trading in sooner can help you secure a higher value.
• Don’t Forget to Clear Personal Items: Removing personal clutter and resetting electronic data ensures a smoother and faster trade-in process.

Final Thoughts

Trading in your car can be a wise, stress-free way to secure credit toward a new vehicle, but preparation is key to maximizing its value. By cleaning the car, addressing minor issues, gathering all documents, and researching its worth, you’ll be well-equipped to negotiate the best possible deal.

When you’re ready to say goodbye to your current ride and hello to the car of your dreams, follow this step-by-step guide and visit CARMART for fast, hassle-free trading. Our trade and selling process is so easy, we’ll have you in and out with a newer, better car for the new year before you can say ho-ho-ho. Need help with getting everything in order? Our financing, service, and parts department can help you along! We look forward to seeing you at CARMART this holiday season!

As winter approaches, snow, sleet, and ice start to make roads more treacherous. These conditions can create serious hazards for drivers. To navigate challenging winter conditions, pre-winter maintenance is essential. Take proactive steps like changing tires to ensure your safety this season.

Why Winter Car Care Matters

Winter weather can create hazardous road conditions, leading to accidents. In 2022 alone, there were 498 fatal crashes caused by snow and sleet conditions, not to mention thousands of injuries. Proper pre-winter maintenance can significantly reduce these risks.

5 Winter Car Care Tips You Can’t Ignore

Swap for Winter Tires

All-season tires are not designed for icy roads, which can lead to compromised safety. Snow tires are specifically engineered to offer better grip and traction during frigid temperatures. Their unique tread patterns and rubber compounds enhance your car’s performance on snowy and icy surfaces. By making the switch to snow tires in November, you not only improve safety but also save money in the long run by potentially avoiding accidents or damage.

Check Your Battery

Cold weather can significantly drain your car battery’s performance, possibly leading to unexpected breakdowns. It is crucial to have your battery checked and, if necessary, replaced before the winter chill sets in. A strong battery ensures that your car starts with ease, even on the coldest mornings.

Inspect Tire Pressure

As temperatures drop, so does your tire pressure. Under-inflated tires can reduce traction, leading to a less stable driving experience. Proper inflation is critical for maintaining optimal traction, which contributes to a smoother and safer ride. Regularly check and adjust your tire pressure to suit the cold weather conditions.

Top Off Fluids

Winterizing your car’s fluids is essential for optimal performance. Ensure that your engine oil, coolant, and brake fluid are at appropriate levels. Additionally, switch to a wiper fluid that contains de-icer to maintain visibility. These steps help your car perform better and avoid issues during the winter months.

Prepare for Emergencies

Always be ready for unexpected situations by packing a winter driving kit. Include essentials such as an ice scraper, flashlight, warm blankets, jumper cables, and non-perishable snacks. This kit can be a lifesaver if you find yourself stranded in a winter storm, keeping you safe and comfortable until help arrives.

Get Ahead of Winter!

Don’t wait until it’s too late—start your winter car care routine now. By taking these preventative measures, you can confidently face winter’s challenges and ensure a safer driving experience for you and your loved ones.

Are you looking for a reliable service center in New Castle, Delaware? CARMART is here to help, with affordable prices and expert service technicians capable of servicing any vehicle. We can get you and your car ready and safe for winter now that it’s knocking on our doorstep! Visit CARMART for all your servicing needs today!

If you’re considering buying a car, now is an excellent time to explore the used vehicle market. Whether you’re budget-conscious or a first-time buyer looking for value, current conditions offer a prime opportunity for a savvy purchase. Here’s why the used car market is particularly favorable right now and why you should seize this moment.

Returning to Pre-Pandemic Used Vehicle Prices

The COVID-19 pandemic disrupted many industries, including the auto market, with supply chain issues—especially the semiconductor chip shortage—causing a surge in used car prices as new vehicle options dwindled. Fortunately, this trend is reversing. As supply chains stabilize and new cars become more available, used car prices are approaching pre-pandemic levels. Gary Palmasani, co-owner of Keyser Ave. Auto Sales, observes that prices are steadily decreasing, nearing the more realistic figures seen before the pandemic. With inventories increasing, buyers now have more options and better pricing.

Increased Availability and Choice

The improved supply of new vehicles means dealerships are no longer struggling with inventory shortages. This increased availability translates to a more diverse selection of used cars, offering potential buyers a wider range of options. You’re more likely to find your desired model or features without the inflated prices seen in recent years.

Economic Conditions Favoring Buyers

The mix of inflation, rising interest rates, and economic uncertainty has dampened demand for expensive new vehicles. Many consumers are cautious about making large purchases, enabling those in the used car market to negotiate better deals. Additionally, recent cuts to the Federal Reserve’s benchmark interest rate have improved loan approval rates and interest conditions, making it easier for buyers to secure favorable financing for used vehicles.

With many consumers gravitating towards newer, more sustainable vehicles like hybrids, demand for traditional gas-only models is shifting. This change may lead to lower prices for these models, offering great value to buyers prioritizing affordability over the latest technology.

The Opportunity Cost of Waiting

While current market conditions favor buyers, it’s important to act swiftly if you’re serious about purchasing a used vehicle. Experts warn that these dynamics won’t last indefinitely. Economic recovery and the rebalancing of supply and demand could eventually drive prices up again.

Take Advantage Now

Considering these factors, buying a used vehicle now presents a unique opportunity. With prices stabilizing, increased inventory selection, favorable financial conditions, and ongoing dealer incentives, it’s an ideal time for budget-conscious consumers and first-time car buyers to enter the market.

Ready to explore your options and secure a great deal on a used car? Visit CARMART to browse our inventory today. Finding the perfect vehicle at a compelling price might be easier than you think, but don’t wait too long—the best deals won’t last forever. Let our financing department and vehicle experts help you get into a great affordable pre-owned car that you’ll love today!

When it’s time to sell your vehicle, trading it in at a dealership isn’t the only option. Whether upgrading or reducing expenses, selling your car privately can often get you a better price. Here’s a guide to help you through the process and maximize your sale.

Steps for a Successful Private Sale

Selling your car privately involves a few important steps to make sure everything goes well and you get a good deal.

Step 1: Determine Your Car’s Market Value

Before listing your car for sale, it’s crucial to know its market value. You can use resources like Kelley Blue Book (KBB), Edmunds, or NADA Guides to get an accurate estimate to make sure you sell within fair market prices. These tools will ask for information such as the car’s make, model, year, mileage, and condition.

Step 2: Gather Necessary Documents

Having all your paperwork in order will streamline the selling process and make you appear more credible to potential buyers. Collect maintenance records, the car title, and consider purchasing a vehicle history report from services like Carfax.

Step 3: Clean and Inspect Your Car

A clean car makes a great first impression. Thoroughly wash and vacuum the interior and exterior. Consider getting a professional detailing service. Additionally, it’s a good idea to have a mechanic inspect the car and address any minor issues to avoid giving buyers reasons to negotiate a lower price.

Step 4: Take High-Quality Photos

Photos are often the first thing potential buyers will see. Take multiple high-resolution photos of your car from different angles, including the interior, exterior, and any notable features or flaws. Good lighting is key—natural daylight works best.

Step 5: Create a Detailed Listing That Sells

Your listing should be comprehensive and honest. Include all relevant details such as make, model, year, mileage, condition, and any recent repairs or upgrades. Don’t forget to mention why you’re selling the car.

Step 6: Screen Potential Buyers

Once your listing is live, you’ll start receiving inquiries. Screen buyers to weed out “tire kickers” and scammers. Serious buyers will typically ask detailed questions and be willing to meet in person.

Step 7: Arrange Test Drives and Inspections

Allow serious buyers to test drive the car, but always meet in public places for safety. It’s also reasonable to request a copy of the buyer’s driver’s license and proof of insurance before they take the wheel. Some buyers may want a mechanic to inspect the car, which is a good sign they’re serious.

Step 8: Complete the Sale

When you’ve found a buyer, meet at a secure location such as a bank to finalize your sale. Cash is ideal for transactions under $10,000. For larger amounts, a bank transfer or certified check is safer. Always verify checks before handing over the keys when you sell.

Step 9: Handle Paperwork

Provide the buyer with a bill of sale and sign over the car title. Notify the Department of Motor Vehicles (DMV) of the sale and follow any local requirements for transferring ownership.

Selling Through Dealers

If the private sale route seems daunting, online car-buying platforms offer a convenient alternative. You can get an instant offer by providing your vehicle’s details, and these companies often handle all the paperwork and arrange pickup. Pros include the convenience of completing the process from home, quick payment—often within days, and not having to deal with buyers or advertising. However, a con is typically lower offers than a private sale, as these companies need to resell your car for a profit.

Another option is selling through brick-and-mortar dealerships and used car dealers. These traditional avenues offer a straightforward process where you can often trade in your vehicle when purchasing a new one. Dealerships handle all the necessary paperwork, providing you with a seamless experience. While this method can offer competitive trade-in values, especially if you’re buying another vehicle from them, the overall offer might still be less than a private sale. However, the convenience and reliability of working with established dealers make this a popular choice for many sellers.

Choose Convenience When Selling, Choose CARMART

Selling your car privately can be the most profitable option but requires time and effort. Alternatively, dealers and online dealers offer convenience at a lower price. Whichever route you choose, being prepared and informed will help you get the best deal for your vehicle.

Ready to take the next step? Visit CARMART and let us help you sell your car without the need to trade it! Our car sales experts can help you with financing and getting the offer you deserve.

Selling a car with an outstanding loan payoff might seem complicated, but it’s manageable with the right approach. Whether you’re looking to upgrade, reduce expenses, or simply make a change, this guide will walk you through the steps to sell your car smoothly even if you still have a loan payoff balance.

Understanding Loan Payoff Basics

When you have a car loan, the lender owns part of your car until you pay it off. This means you need to settle or transfer the loan before the new owner can take the car. While this adds some steps, it shouldn’t stop you from selling.

What to Consider Before Selling

Before you sell, think about:

• Loan Balance vs. Car Value: Check how much you owe on the loan compared to what your car is worth.
• Financial Goals: Make sure selling fits your financial plans, especially if you owe more than the car is worth.
• Lender’s Policies: Ask your lender what their rules are for selling the car, including any fees.

How to Sell a Car with a Loan

Step 1: Find Out Your Car’s Value

First, check how much your car is worth using trusted sites like Kelley Blue Book or Edmunds. This will help you set a fair price and see if you have positive or negative equity. Selling your car privately usually gets you a better price than trading it in at a dealership, so compare both options.

Step 2: Get the Loan Payoff Amount

Contact your lender to find out how much you owe. This is called the payoff amount and might be different from your remaining loan balance due to interest. Ask if there are any penalties for paying off the loan early.

Step 3: Know Your Car’s Equity

To figure out your car’s equity, there are two things to know: Positive Equity and Negative Equity. Positive Equity means your car is worth more than what you owe, so you’ll get money from the sale after paying off the loan. Negative Equity means you owe more than the car is worth, so you’ll need to pay the difference.

Step 4: Talk to Your Lender About your Loan Payoff

Before you sell, talk to your lender. They may have specific instructions or deals with car dealers to help with the sale. They also hold the car title, so you’ll need their help to transfer it to the new owner.

What to Do If You Have Negative Equity

If you owe more than your car is worth, you have a few options. Refinancing your loan could lower your monthly payments and help you build equity faster. A personal loan might help cover the gap if you decide to sell but be careful of high interest rates. Lastly, you could use savings to pay the difference and avoid more debt.

Make Selling Your Car Easy

Selling a car with an outstanding loan involves some extra steps, but with planning and research, it’s manageable. At CARMART we can help you navigate through the finances of the car-selling process today. Whether you have an outstanding loan payoff, need to sell your car, or want to trade up, visit us today, and let’s explore your options to ensure you get the best deal!

Ready to sell your car? Explore your options and start planning today!

There may be no universal minimum credit score needed to finance a car, but there can certainly be challenges. How can you leverage your credit to get a good loan and get on the road quickly? Here are a few tips on how to buy a car with bad credit.

Evaluating Your Finances

Before buying any car, you must evaluate your finances to know how much you can afford to put into a loan. Credit score and a down payment are some of the most important features to consider when applying for auto financing, and while your credit may be bad it’s not impossible to buy a car. First, save for a down payment. A down payment will help offshoot the high interest rate of your loan due to a low credit score. The higher the down payment, the better!

Then, compare loan offers. Shopping around is crucial for the best rate possible as different lending institutions tend to have different rates. Remember that you can also finance a vehicle through your dealership or car center!

Improving Your Bad Credit

While your initial interest rates may be less-than-favorable, it is possible to use your auto loan as a way to improve your credit. While it’s best to pay off credit cards and lessen your debt before a purchase, timely payments on your auto loan could raise your credit score enough to refinance with a better rate at a better point in the economy. Remember that improving your credit by as little as 50 points can make a massive difference in your rates.

Get a Co-Signer

From a lender’s perspective, having a co-signer can lower their risk when lending to someone with poor credit. The co-signer acts as a fallback for the lender if you can’t make your monthly payments. However, the difficulty lies in finding someone with stronger credit than yours who is willing to help with this responsibility. Ultimately, a co-signer can be a strong negotiating tool and may result in a lower interest rate. However, the co-signer’s credit score can suffer if the loan becomes delinquent — even though they don’t own the vehicle. No one wants a broken relationship because of a loan, so it’s important to be very careful and diligent in your loan payments when a co-signer is involved.

Don’t Let Bad Credit Stop You! Let Us Help You Get on The Road Today

A vehicle is a necessity in today’s world. Without a car, it can be difficult to commute to work, buy groceries, or fulfill your other daily necessities. Let us help you get back on the road with a new-to-you-used vehicle! At CARMART we’re determined to help you find the vehicle that best suits your needs, independent of your credit history. Whether you have no credit or bad credit, our financing department is ready to assist you in any way possible. Click, call, or visit our lot today for incredible offers on all makes and models!

Dealing with a negative equity vehicle can be a stressful experience, especially if you’re looking to trade in or sell your car. But don’t worry—you’re not alone, and there are steps you can take to manage this situation effectively.

What is Negative Equity?

Negative equity, often called an ‘upside-down’ loan, occurs when you owe more on your car loan than the vehicle is worth. This situation can happen for several reasons:

• Depreciation over time
• Accidents or repairs that reduce the vehicle’s value
• High-interest rates or long-term loans

When you have negative equity, selling or trading in your car can become more complicated.

It can be surprisingly easy to end up in a bad situation ‘upside-down’ car loan. No-money-down purchases mean your loan not only involves the vehicle, but also the taxes, licensing, registration, and fees, making your financed amount larger than your car’s value. Long-term loans and rapid car depreciation due to usage and accidents are common culprits that lead to being in a tight, negative equity situation.

Options for Dealing with Negative Equity

1. Pay the Difference Upfront

One simple solution is to cover the gap between your car’s worth and your remaining loan balance upfront. This method enables you to begin anew with a new car loan or lease, free from any lingering debt.

2. Refinance Your Loan

You might consider refinancing your existing loan to secure a lower interest rate or shorter term, potentially decreasing your monthly payments. Yet, this choice generally necessitates good credit and may not be accessible to all.

3. Keep the Car and Pay Down the Loan

If trading in or selling the car isn’t urgent, consider keeping your vehicle and making extra payments to reduce the loan balance faster. This method can help you reach positive equity more quickly without the need to take on additional debt.

4. Sell the Car Privately

Selling your car privately could fetch a higher price compared to a trade-in. While this might not get rid of your negative equity entirely, it could reduce the amount you owe significantly.

Get Help with Your Negative Equity Today!

Negative equity on your car loan doesn’t have to be a financial nightmare. By understanding your options and taking strategic steps, you can effectively manage this situation and move towards a more secure financial future.

Ready to take control of your finances? Schedule a consultation with our financing department today and let us help you get out of a bad situation and into a car you love! Visit a CARMART near you to regain your freedom financially and on the road!

Buying a car is necessary in our current road-driven world, and buying a car seems like a complicated process. Follow our easy tips and cruise through your first-time car-buying journey!

Do Your Research When Buying a Car

What car type should you buy? What brand? How much does it cost to insure your car? What’s your budget? Where should I get a loan? These are all important questions that are answered by one simple answer: research.

First, start with the car. What features do you need? How many seats? Do you need your vehicle to tow or have a large cargo capacity? Then, comes mileage and fuel type. Gas isn’t the only way to make cars go and, while expensive, diesel is still an option. Hybrid cars have much better mileage and Electric Vehicles can save you money at the pump, but their technology is still improving. However, they’re quickly catching up to traditional gas vehicle mileage. While researching a car that fits your needs, remember how much it’ll cost you – not only for a down payment but also for financing and insurance. Different interest rates, deals, and insurance rates based on your driving can drastically affect your monthly payment involved with car ownership. Have your finances in order before coming to the dealership to finance and buy– it will help once you’re ready to make a purchase. Many dealerships, like CARMART, even offer loans and credit checks in-house for your convenience! 

The Dealership

Different dealerships have different stocks of cars, and CARMART is no exception with its variety of makes and models. Every car is different, so it’s always a good idea to test drive any make and model you’re considering buying. Different cars handle differently and it’s important to get a good feel for a new vehicle before signing into a years-long commitment.

Once you’ve decided that you like a car, it’s time to negotiate. Negotiating can seem intimidating, but it’s always important to get the best deal possible. Come prepared with any paperwork needed, a firm understanding of your credit history, and the right questions to ask.

Ask For Help!

Unsure what kind of car you want to buy or need questions answered? Build a relationship with your local dealer! At CARMART, we’re looking to get you a great deal on a vehicle that works for you. We want to see all our customers happy in cars that do the most for them. Visit us today and let us help you get on the road in a car you’ll love.