Car equity is one of the most important factors to consider when it comes to the vehicle financing process. It can affect how much money you owe on the vehicle in the event it is stolen or damaged, and how much value you’ll see returned to when the time comes to sell or trade in your current model. Learn about vehicle equity, and take the first step on the financing journey, with help from Mike Toler Chrysler Dodge Jeep® RAM FIAT.
What Is Car Equity?
You’ll want to think of car equity as the value of your vehicle if you sold it today — minus the value of any outstanding loans or liens against the car. It’s the difference between the current resale value of the car and the amount that you still owe on the car. If you have a positive equity on your vehicle, it means the car is worth more money than you have to pay with your current loan. If you have negative equity, it means you owe more on the vehicle than it is currently worth.
Why Is Car Equity Important?
Car equity is important for many reasons, mostly related to getting the return on your investment when the time comes to sell or trade in your vehicle. Whether your equity is negative or positive, you’ll still want to decide if it’s a good time to trade in your car, or if the equity will get better by you paying off more of the loan and waiting for changes in market conditions. You’ll also want to consider equity if you are refinancing your loan, as the amount you owe will change.
Begin the Vehicle Financing Process in Morehead City, NC
Vehicle financing doesn’t have to be overwhelming. With help from Mike Toler Chrysler Dodge Jeep RAM FIAT, you’ll have the information you need to navigate every step of the process with confidence. Find the right vehicle for your lifestyle and your budget at our dealership.