Financing a used Nissan car isn’t just about knowing which model you want. You also need to avoid negative equity, as this can put you in a treacherous financial position in the long run. Hall Nissan Virginia Beach has all the information you need about negative equity in used Nissan cars.
What Is Negative Equity?
Negative equity occurs when the value of a car is less than what the driver still owes. For example, if your vehicle is worth $21,000 but you still owe $22,000 across your remaining finance payments, you have $1,000 of negative equity. Any negative equity means you won’t receive as much money when you sell the car as you paid when you bought it. This is often referred to as being “underwater” on a loan.
How To Avoid Negative Equity
The best way to protect yourself against negative equity is to be smart when buying a used Nissan car. Know your budget ahead of time so you don’t purchase a vehicle outside your financial comfort zone. You can also reduce devaluation by keeping up with routine service to maintain vehicle performance and operation.
How To Fix Negative Equity
Have you developed negative equity on your used Nissan car? Fret not: you can take steps to remove it. If you can afford to make larger or additional payments on your finance plan, that will reduce your negative equity faster. You can also contact our financing team about refinancing options and what they can offer you.
Shop Smarter for Used Nissan Models in Virginia Beach, VA
If you’re still worried about your loan or equity, our dealership can help you. Contact Hall Nissan Virginia Beach today to learn more about financing. We’ll help you evaluate your used Nissan vehicle and ensure your financing solution is sustainable.