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!
April showers may eventually bring May flowers, but until that time, heavy rain mainly brings headaches to drivers everywhere. Your vision is compromised, your brakes are slower to respond, and your fellow drivers are more unpredictable. Needless to say, the chances of an accident increase significantly in stormy conditions.
That’s why we have your back with these tips for combating the elements this spring. Courtesy of CARMART, here’s how you can keep yourself safe while driving through heavy rain.
Make Sure Your Windshield Wipers Are Prepared to Go
Your windshield wipers are, of course, your main line of defense against severe rainfall. And if you haven’t swapped in a fresh pair this year, they’re probably worn out from combatting ice and snow over the course of the long winter. Make a service appointment with us ASAP and install a set of crisp wiper blades that won’t leave streaks and smears, potentially compromising your windshield’s visibility.
Avoid Heavy or Abrupt Braking
Every year, 75% of weather-related accidents occur on wet pavement – and 47% happen during rainfall. Get in the habit of changing your braking routine when driving in heavy rain, as it takes significantly longer to come to a complete stop. Guide your car into a gradual stop rather than braking abruptly by taking your foot off the accelerator earlier than you normally would. Then, apply light pressure to the brake pad to coast to a gentle halt.
Beware of Hydroplaning
Just as it takes longer to come to a complete stop on wet surfaces, hydroplaning is more likely to occur. Hydroplaning occurs when your tires lose traction, causing your car to drive on the surface of the water rather than the surface of the road – which, in turn, causes you to momentarily lose control. If you start to hydroplane, do these three things in order: remain calm, take your foot off the gas pedal, and steer in the direction you want to go. To avoid hydroplaning, be on the lookout for standing water, steering around it rather than confronting it head-on.
Keep Your Distance from Other Cars
A thunderstorm (or really, any conditions) is not the time to aggressively tail a slow driver. Since we’ve established your car’s reaction and braking times are longer in wet conditions, you’re risking a fender-bender situation just by being close to other vehicles. Double your normal following distance instead, leaving a wide proximity between yourself and your fellow commuters. This also helps avoid water being splashed onto your windshield by larger vehicles.
Leave Your Lights On
In Delaware, it’s state law that you must have your headlights on while your windshield wipers are in use. But regardless of where you live, having your lights on during a storm is both common sense and common courtesy. Not only is the added visibility necessary for your driving purposes, but it also alerts other drivers as to your location in these chaotic conditions.
Anticipate the Unexpected
You never know when an April storm is going to hit. If the sky looks ominous and you haven’t departed yet, it’s best to hold out in case the weather improves. But there will inevitably be times when you’re in the middle of a drive, the sky takes a turn for the worse, and the next exit isn’t for miles. (If it’s really bad, don’t hesitate to pull over on the side of the road and wait for the worst to pass.)
All you can do in events like these is keep your car as prepared as possible. Thankfully, here at CARMART, we can help you do just that. Schedule your service appointment today and let us prepare your tires, wiper blades, and more for the rainy season. And while you’re here, check out our expansive, diverse inventory, stocked full of quality vehicles. Set up your test drive today; from the Hyundai Sonata to the Ford Fusion, we’re sure to have the perfect companion for all the sunny days lying ahead.
In this blog, we take a look at a list of CarMart’s top five tips and tricks that make life on the road easier for new drivers.
Driving is an exciting milestone in life, but it can also be intimidating, especially for new drivers. Navigating the roads as a beginner involves a lot of responsibility, but with proper guidance, it can be a lot easier and more secure. In this blog, we will focus on five tips that can help new drivers stay safe and confident on the road.
Tip 1: New Drivers Should Master the Basics
Before hitting the road, it is essential to understand the fundamental rules of driving. Start by reviewing your state’s driver’s manual or take an approved driver’s education course. This will help you learn the rules of the road and gain a better understanding of road signs, speed limits, and traffic laws. Knowing the basics ensures that you can navigate the roads with confidence and safety.
To further master the basics and gain a strong foundation in driving, it is important to practice frequently in various conditions. Make sure to drive in different weather conditions, such as rain or snow, and during different times of day. Additionally, practice on roads with varying speed limits and traffic levels. This will help you become comfortable behind the wheel and stay safe on the road.
Tip 2: Keep Your Car Maintained
Regular car maintenance is crucial for a vehicle’s safe operation. Keeping up with oil changes, brakes, and tire rotations are necessary for ensuring that the car is in proper working order. Having a reliable vehicle also means reducing the chance of costly and dangerous breakdowns.
Having a reliable car is also essential for avoiding any unwanted incidents on the road. Be sure to check your fluids (oil, coolant, brake, and transmission) regularly and top them off if needed. Make sure to have your brakes inspected occasionally, as well as inspect the car’s tires for proper inflation levels and tread wear.
Tip 3: Avoid Distractions
Distractions while driving are dangerous, irresponsible, and can lead to accidents. Keep your phone on silent and out of reach while driving. If you need to use your phone, pull over to a safe spot to take the call or reply to a text message. Additionally, avoid eating, smoking, grooming, or engaging in other distracting activities while behind the wheel.
In order to reduce distractions while driving, it is important to minimize the number of passengers in the car. Having fewer passengers in the vehicle reduces the chances of conversations or other interactions that could take your focus away from driving. Additionally, avoid programming GPS devices or changing radio stations while driving, as these activities require visual and mental attention.
Tip 4: Don’t Tailgate
Maintaining a safe distance between your car and the vehicle in front is crucial for a driver’s safety. The recommended following distance is three to four seconds between cars. This ample time will allow you to avoid a collision if the vehicle in front makes any sudden stops or turns.
Tailgating can be dangerous and should always be avoided. Not only can it lead to rear-end collisions, but it can also cause road rage from the driver in front. Additionally, tailgating restricts vision and forces drivers to make quick decisions in order to avoid a collision.
Tip 5: Obey All Traffic Rules
Driving safely and responsibly involves obeying all traffic rules and laws, including stop signs, traffic signals, and posted speed limits. Remember, breaking the rules puts not only your safety but also the safety of other road users at risk.
When driving, always be aware of the speed limit and the posted signs to ensure that you stay within the laws. Following the speed limit helps prevent speeding tickets and keeps you from putting yourself and other drivers at risk. Additionally, be mindful of intersections and obey any traffic signals, such as stop lights or yield signs. These traffic signals are there to keep you and other drivers safe on the road.
Get Out and Drive — Safely!
In conclusion, as a new driver, it is crucial to remain vigilant, patient, and adhere to basic traffic rules. Regular maintenance of your car, avoiding distractions, and maintaining a safe following distance are all essential practices to help ensure safe driving. Remember to never drive under the influence of drugs or alcohol, always wear your seatbelt, and enjoy the ride. Following these five tips will make you a more confident and responsible driver.