What to Do If You’re Upside Down on Your Car Loan

Being upside down on a car loan—owing more than your vehicle is worth—is more common than most people realize, especially in fast-moving markets like Los Angeles. Drivers in Glendale, Burbank, North Hollywood, and Van Nuys often face this situation after rolling negative equity, choosing longer loan terms, or experiencing rapid depreciation.

The good news is that being upside down does not mean you’re stuck. The key is understanding how negative equity can be strategically managed, rather than ignored. Professional solutions involve timing, vehicle selection, lender alignment, and accurate trade-in valuation.

One of the biggest mistakes consumers make is accepting instant trade-in offers. These offers are typically conservative and fail to account for real market demand. A calculated trade-in strategy compares multiple channels and leverages dealer relationships to extract the highest possible value.

In some cases, negative equity can be absorbed into a new loan or lease—when structured correctly. In others, selecting a vehicle with strong residual value or manufacturer support can dramatically reduce the impact. Each situation requires a tailored approach, not a one-size-fits-all solution.

Addressing negative equity early protects credit, improves future options, and reduces long-term financial strain.

Upside down on your loan?
Call or text now for a personalized exit strategy.