{"id":3024,"date":"2017-10-04T09:00:09","date_gmt":"2017-10-04T13:00:09","guid":{"rendered":"https:\/\/www.autoraptor.com\/?p=3024"},"modified":"2017-10-04T09:00:09","modified_gmt":"2017-10-04T13:00:09","slug":"help-customers-upside-down-car-loans","status":"publish","type":"post","link":"https:\/\/www.autoraptor.com\/blog\/help-customers-upside-down-car-loans\/","title":{"rendered":"How to Help Customers with Upside Down Car Loans"},"content":{"rendered":"

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\"upside<\/h2>\n

Upside down car loans are becoming the norm, but you\u2019re in a unique position to change this trend.<\/h2>\n

2016 was a bad year for trade-ins. 32% of all trade-ins toward the purchase of a new car were under water, according to Edmunds<\/a>. In other words, one-third of the customers buying from your dealership likely have negative equity on their trade-ins, meaning they owe more on the loan than the vehicle is worth. The average negative equity for those buying new cars is about $4,800, while those buying used cars have negative equity of about $3,600.<\/p>\n

The 32% figure is the highest ever recorded. Why do so many U.S. car buyers have upside down car loans? It\u2019s a combination of higher transaction prices, lower down payments, and long-term loans.\"upside<\/p>\n

So many people in our country are in debt\u2014so why should upside down car loans be your problem? When your wife goes clothes shopping, the cashier doesn\u2019t ask her if she can afford what she\u2019s about to buy. Likewise, if you go out for a steak dinner, your waiter doesn\u2019t grill you about your budget or debt status. Why should you have to coach a car buyer through making better financial choices?<\/p>\n

Because it\u2019s the right thing to do<\/a>. Behind buying a house, a vehicle is usually one of the biggest purchases a person will ever make. One small upside down car loan can snowball through the years and become a totally out of control upside down car loan. If you don\u2019t call attention to the negative equity and help the customer finance a new vehicle, there may come a time when their credit becomes so bad, that you\u2019ll lose them as a customer\u2014because they won\u2019t be able to afford a new vehicle again.<\/p>\n

You\u2019re the expert in this situation, and your customer may not even be aware of what upside down car loans are. You\u2019re in a unique position to help them make a good decision and a purchase they can be happy with in the long run, nevermind that trust you’ll build by being honest.<\/p>\n

Tips for handling customers with upside down car loans<\/h3>\n

Every situation you encounter is going to be unique, so there\u2019s not a one-size-fits-all approach to helping customers with upside down car loans. For example:\"upside<\/p>\n