 TITLE: How to Get Out of a Car Loan You Can’t Afford CONTENT: How to Avoid Going Upside Down on a Car Loan\n--------------------------------------------\nBeing upside down on a car loan occurs when you owe more than the car is worth. It's also called being underwater or having negative equity.\nIf you're upside down on your car loan and sell it, refinance it or voluntarily surrender it, you may need to pay the lender to make up the difference between the car's value and the outstanding loan amount. If you're already struggling with your payments, this payment can make your situation much worse.\nThere may not be much you can do about being underwater on a car loan if you're already there. But here are a few ways you can avoid it:\n*   **Make a large down payment.** Most cars depreciate over time—new cars tend to depreciate rapidly during the first year. If you don't make a down payment or put down just a little, your vehicle could depreciate faster than you're able to pay down the loan. Making a larger down payment can help prevent negative equity.\n*   **Opt for a shorter repayment term.** A longer auto loan term can make monthly payments more affordable, but it can have an unintended consequence if you're not careful. Even if you put money down on your loan, a longer repayment term means you're paying down the loan more slowly, which could make it easier for depreciation to outpace your repayment. END