Buy Your Car No Matter How Much You Owe May 2026

When you owe more on a car than it is currently worth, you have , also known as being "upside down" or "underwater". Dealerships handle this in several ways:

: Lenders often allow financing up to 120% to 130% of a new car's value to accommodate rolled-over debt. buy your car no matter how much you owe

: The most common method is adding your existing debt to the loan for your new vehicle. For example, if you owe $20,000 on a car worth $15,000, the $5,000 difference is added to your new car loan. When you owe more on a car than

: Dealers may use manufacturer rebates or discounts on the new car to offset some of the negative equity. if you owe $20