What does rolling negative equity into a car loan cost?
Cost of rolling an old loan into a new one.
Extra payment a month
$99
- Rolled in: $5,000.
- Payment: $692 with it, $593 without.
- Equity turns positive in month 21. Without it: from day 1.
- Extra paid over 60 months: $5,940.
7.0% APR. 60 months. 6% sales tax on the price. Value: -15% year 1, -10% a year after.
| End of | Car value | Owed, rolled in | Equity | Owed, without | Equity, without |
|---|---|---|---|---|---|
| Year 1 | $26,516 | $28,897 | -$2,382 | $24,763 | $1,753 |
| Year 2 | $23,396 | $22,411 | $985 | $19,205 | $4,192 |
| Year 3 | $20,277 | $15,456 | $4,821 | $13,244 | $7,032 |
| Year 4 | $17,157 | $7,997 | $9,160 | $6,853 | $10,304 |
| Year 5 | $14,038 | $0 | $14,038 | $0 | $14,038 |
- Price
- $31,195
- Financed, rolled in
- $34,947
- Financed, without
- $29,947
- Interest, rolled in
- $6,572
What this cannot tell you
Car value uses a straight-line rule, not market data.
Some states tax the price after the trade-in.
- 2 or more sources
- 1 source
- Model-level, rule or estimate
Price and payments: more tools
- What is the monthly payment?Payment by trim, rate and term.
- How much car can I afford?Car price from your income and budget.
- 0% financing or the cash rebate?Which deal costs less over the loan.
- How much value does a car lose?Used values and resale by year.
- What changed each year?Price, power and mpg for each model year.
- Is better mpg worth a higher price?Payback years of a higher price for better mpg.
- Should I repair or replace my car?Repair bill vs the cost of a newer car.