Negative Equity Loans
Upside Down Equity Car Loans
Are you stuck in a car loan where your equity is upside down? Yes Plan Financial auto loan programs are your best solution to refinance car loans with negative equity. Based in Edmonton, we refinance negative equity loans in Alberta, BC, Ontario and the NWT. Yes Plan Financial offers low rates, fast approvals and quick turnaround on every negative equity loan.
When a car is worth less than the balance of a car loan, it is called an upside down or negative equity loan. The value of the asset, or car, is less than the amount owed on the car loan. When refinancing a car loan the difference between the value of the car equity and the payout figure on your original car loan is either positive or negative. If the equity is negative then the difference must be paid off or added to the new loan when you refinance.
In general, the major depreciation of a new car occurs in the first two years of a car loan. As a rule, car loans are in a negative equity position until 60%, or three fifths of the payments have been made on a car loan. For example: The equity in a 5 year car loan will probably be upside down until the third year of the loan.
Interest Rates and Negative Equity
One of the major factors of compound negative equity is an outrageously high interest car loan. Every month, interest eats away at equity. The interest rate you are paying is based on your credit and financial situation at the time you took out your car loan. With most car loans, payments are made on time and as agreed. In most instances, people have improved their credit and finances since they originally took out their car loan.
However, even though their credit has improved they are still paying a heavy penalty for their poor credit at the time they took out the loan. This is where Yes Plan Financial car loan refinancing comes in. We can refinance your existing car loan at a lower rate than you are presently paying even if your current loan is upside down.
Yes Plan Car Loan Refinancing
Yes Plan Financial specializes in mortgages, title loans and refinancing used car loans. Whether you reside in Alberta, BC, Ontario or the Northwest Territories, we can probably save you money on interest, while reducing your monthly loan payments.
If you are tired of seeing your equity being squeezed by high interest rates, give us a toll free call or use our fast application for a negative equity loan.