Have you heard the term "negative equity" as you have shopped for a new car, truck, or SUV? Some folks may be unaware of what the term means. Essentially, negative equity means that you owe more than what your current vehicle is worth. It can cause many issues for people who are looking to trade an existing vehicle for a new one because banks and credit unions have loan to value as one of their considerations for approving your auto financing. Lithia Ford of Missoula has assisted many car shoppers with negative equity.

The surest way of making sure that negative equity doesn't impact your auto financing is by saving up money for a down payment to offset it. If you have any questions about negative equity, don't hesitate to contact the finance center at Lithia Ford of Missoula.

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