Bad Credit? "Upside Down" With Negative Equity?

Owing more on your existing vehicle than it is worth? That’s negative equity and missed payments, bankruptcy or other reasons why you have bad credit are really stressing you out. You are not alone.

What is negative equity?

So, your car is worth $10,000, but you still owe $13,000 on your loan. That $3,000 difference is your negative equity—you’re “upside down” on your loan. And it is a situation that’s more common than most people think, especially with skyrocketing vehicle costs and longer loan terms becoming the norm.

But when it’s time to trade in your car, negative equity can be a barrier. Some lenders shy away from high loan-to-value (LTV) ratios, and that can make it feel like your options are limited even before your credit situation is added in.

Is there a path forward for me?

There’s good news. The Car Loan Lady specializes in handling situations just like this. Instead of letting negative equity hold you back, we work with lenders who look beyond the numbers of that and your credit situation.

• Tailored solutions. We find financing options that roll your negative equity into your new loan in a way that’s manageable.
• Smart negotiations. By leveraging our dealership network, The Car Loan Lady helps you get the best possible trade-in value for your current vehicle.
• Focused on the future. Got goals? We’ll help you find a loan that fits your budget and helps you rebuild financial stability.

Can I still get a car loan?

Lenders willing to work with high LTV ratios understand one thing: negative equity doesn’t define your financial situation. If your income is stable and your credit shows improvement, they see an opportunity to help you move forward. The key is finding the right lender, and that’s where experience matters.

You can do this. The Car Loan Lady can help!

Getting back on the road in a reliable vehicle can help you regain your independence—and it can also help you rebuild your financial footing. Take control of your future with help from The Car Loan Lady. Contact us today at caroline@thecarloanlady.caor 647 407 7487. We can help you find the loan that fits your needs. You’re never out of options. You’re just getting started! © The Car Loan Lady 2025, all rights reserved.