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What is a Negative Equity Car Loan? A negative equity car loan occurs when you owe more on your vehicle than it is currently worth. This situation, often referred to as being "upside down on a car loan," can arise due to factors like rapid depreciation, high-interest rates, or rolling over old debt into a new loan. For example, if your car is valued at $20,000 but your loan balance is $25,000, you have $5,000 in negative equity. Drivers in Circleville, OH, may find themselves in this situation for various reasons, but understanding the root cause is the first step toward resolving it. more Upside Down on a Car Loan: What to Do If you’re upside down on a car loan, there are several strategies to consider: Keep the Vehicle Longer: By holding onto your car and continuing to make payments, you can gradually reduce the loan balance until it aligns with or falls below the vehicle’s value. Refinance Your Loan: Refinancing may help lower your interest rate or extend your loan term, making payments more manageable while addressing negative equity. Make Extra Payments: Paying more than the minimum each month can help reduce the principal balance faster, minimizing the gap between what you owe and what your car is worth. At Coughlin Ford of Circleville, our team can guide you through these options and help you make an informed decision tailored to your financial situation. How to Avoid Negative Equity in the Future Preventing negative equity starts with smart purchasing decisions. Here are some tips: Make a Larger Down Payment: A substantial down payment reduces the amount you need to finance, decreasing the risk of negative equity. Choose Vehicles with High Resale Value: Ford vehicles, known for their durability and American craftsmanship, often retain their value better than competitors. Avoid Rolling Over Debt: When trading in a vehicle, ensure that any remaining loan balance is paid off rather than added to a new loan. By working with trusted dealerships like Coughlin Ford of Circleville, you can access tools and advice to make financially sound decisions when purchasing or financing a vehicle. Visit today! If you’re dealing with a negative equity car loan or wondering what to do when upside down on a car loan, visit Coughlin Ford of Circleville. Our experts are here to help drivers in Circleville, OH, explore practical solutions and find the best path forward. Negative equity car loans can feel overwhelming, but they’re not insurmountable. By understanding your options and working with knowledgeable professionals, you can regain control of your finances and make smarter vehicle decisions moving forward. Whether you're upside down on a car loan or looking to avoid negative equity altogether, we’re here to help every step of the way. Visit Coughlin Ford of Circleville today!

When you're ready to get your next car, you might want to consider leasing instead of an outright purchase. Leasing offers many benefits, with packages that can be customized to meet your needs. To discover the many Ford leasing options available and to find out if it's right for you, visit your local Ford dealership. Pros of Leasing Cheaper Costs When you lease a car, you're only paying for the proportion of time that you'll be using it for, which means that the monthly cost is typically lower. The upfront costs are often less, too, making it a budget-friendly way to get behind the wheel of a new car. more Routine Maintenance Included Routine maintenance such as oil changes and tire rotation helps to keep cars in prime condition and needs to be carried out regularly. Most lease packages include routine maintenance as standard, so you won't need to pay out for the usual expenses of servicing your car. Regular Access to New Cars Ford technology is constantly advancing, which means new and exciting features are regularly included or made available on the latest models. When your lease expires, you can opt to sign a lease on a brand-new model, giving you access to the latest innovations. Multiple Ford Leasing Options When you purchase a car, it's yours until you decide to sell it, but leasing offers multiple options. When the lease expires, you can choose to hand the car back and walk away, or you can sign another agreement for a new car. If you love the car, you can choose to purchase it, either during your lease or at the end of the term. Talk to the dealership when setting up the lease to ensure it's structured to give you the options you want. Cons of Leasing Mileage Restrictions The terms of a lease specify how many miles are included before extra costs start to apply. For many drivers, the allowable mileage is more than sufficient to cover what they need throughout the year. However, for high-mileage drivers, this restriction may mean that leasing isn't the most cost-effective option. Before making a decision, talk to the dealership about alternative leasing packages that offer a higher mileage allowance. Penalties for Wear and Tear Leasing a car is the equivalent of borrowing it for a specified period of time. This means when it comes to returning it, the car needs to be in good condition, without excessive wear-and-tear. The terms of your lease will specify what's reasonable, but you won't be penalized for normal wear and tear that always occurs over a car's lifetime. Leasing is a flexible option that works well for many drivers, but it won't be right for everyone. There are many other pros and cons to consider, so drop by Coughlin Ford of Circleville in Circleville, OH today to find out more.

When you're getting ready to purchase your new Ford, you may not think of getting financing directly through your dealership. However, your dealership is often the best choice for obtaining financing to purchase your vehicle. Here are four great reasons for getting your car financing directly from your Ford dealer. 1. It's a Lot More Convenient Getting financing at the same time and place as you purchase your vehicle just makes more sense. It saves you the time of traveling and/or phoning your bank branch and conveying information back and forth. All that extra time may even mean that you could lose out on your vehicle of choice. Your dealership is ready and willing to finance your vehicle and has the paperwork and information to get it all done fast and easily after you select your vehicle. more 2. You're More Likely To Get a Loan Banks have a lot of guidelines and requirements around obtaining loans, and unless you have a great credit score, you may not meet them. Or even if you do meet their stringent terms, your bank may not be flexible on the interest rates, amount, or repayment terms, so you may be limited in the amount you can borrow and comfortably pay back. Your car dealership is committed to getting you into the car you want to purchase. Therefore, their financing department is more likely to extend a loan amount with more manageable terms, even if your credit isn't great. 3. You'll Get a Better Deal Unlike banks and large financial institutions that make their money off the interest on your loan, dealerships make their money by selling you a vehicle. This means that when it comes to negotiating interest rates and other payment terms, car dealerships are a lot more likely to be flexible so they can make the sale. Often this means they may not even require a down payment, and they'll likely offer you very low interest rates. 4. You May Get a Better Vehicle As we just mentioned, car dealerships make their money by selling you a vehicle, not on interest payments they receive. This means they may be willing to negotiate a higher loan amount or offer you more flexible repayment terms to help you purchase a larger or more expensive vehicle. At Coughlin Ford of Circleville, we aim to provide you with the best car-buying experience possible. Our award-winning team is ready to assist you in your vehicle selection, obtaining the financing you need, and maintaining your vehicle for many years to come. Call or visit Coughlin Ford of Circleville today to view our vast inventory or ask any questions.