Negative equity calculator
Subtract what you owe from what your car is worth. If the result is below zero, you're underwater, and rolling it into a new loan means paying interest on that gap.
No email. No phone. No dealer calls. Every value on this site is free to read without signing up. How we keep it that way
Don't know it? Look up your car's trade-in range.
What the regulators say
- Some dealers roll negative equity into the new loan even after promising to pay it off; you then pay interest on it (FTC).
- Check the amount financed and down payment on the installment contract before signing (FTC).
- 11.6% of loans in CFPB's 2018–2022 data included negative equity; those loans had larger amounts, payments and rates (CFPB, June 2024).
Next: Trade-in value guide · Compare instant cash offers (several buyers say they can pay off a lien) · How much is my car worth?
Questions
What is negative equity on a car?
You have negative equity (are "underwater") when you owe more on your loan than the car is worth. The FTC example: a car worth $15,000 with $18,000 owed has $3,000 of negative equity.
Can a dealer just pay off my negative equity?
The FTC warns that some dealers who promise this actually add it to your new loan or take it from your down payment, and that misrepresenting this is illegal.
How common is it?
In CFPB data for 2018–2022, 11.6% of vehicle loans included negative equity. The mean amount was $5,073 for new-vehicle and $3,284 for used-vehicle financing.
How do I get out of it?
The FTC lists options: wait and pay the loan down (including principal-only payments), sell the car yourself, get the dealer’s handling in writing, and keep any new loan as short as you can afford.