4+ How To Trade In A Car With Negative Equity Background. When trading in a car that has negative equity, you have several options — but they can be costly, and some require a big. Best way to trade in a car with negative equity without breaking the bank and going into a deep dark hole of debt.
In other words, if the car is worth $5,000 and you owe $4,000, you have $1,000 in equity.
Reed says some unscrupulous car dealers have been known to throw your keys on the roof so you can't leave until you. To find how much negative equity you have, get the payoff value of the loan from your lender, then research the value of your vehicle and subtract these. The federal trade commission recommends that you also ask the dealer specifically how negative equity is being treated in the deal. This might sound tricky, but it can be done.
