If you have traded in a car for another one during your lifetime, you may have heard the term, "negative equity." For those of you who haven't heard the term, it is when you owe more on a car than what it is worth. People who are attempting to buy or lease a new vehicle when they have negative equity on their current one often run into issues with their auto financing. A bank or credit union considers loan to value when they are deciding whether to approve your car financing, so negative equity can be a huge issue.

The finance center at Lithia Nissan of Clovis has assisted many car shoppers with negative equity in the past. Most of the time, a down payment to cover the negative equity in your vehicle is the best way combatting the issue. If you feel like you may have negative equity in your car, but want to buy a new one, contact the sales team at Lithia Nissan of Clovis today.

Categories: Social, Finance