What is Negative Equity
on Your Car Loan?

Escape the Trap of Negative Equity
What Cherry Hill, NJ, Drivers Need to Know

If you owe more on your car than it's worth, you're not alone. Many car owners find themselves "upside down" on their loans, trapped in a cycle of debt that feels impossible to escape. Negative equity can lead to higher interest rates, longer loan terms, and financial stress—especially when trying to trade in or refinance your vehicle.

The good news? There’s a way out. Instead of rolling old debt into another costly loan, leasing a Chevrolet electric vehicle (EV) offers a more affordable solution. With lower interest rates, shorter terms, and a path to eliminating negative equity, leasing can help you regain control of your finances.

For Cherry Hill, NJ residents, this guide will walk you through how leasing a Chevy EV can relieve this trap and set you on a better financial path.

Let's break this down...

The Problem: Owing More Than Your Car is Worth

If you owe more on your car loan than the car is worth, that's called negative equity (also known as being "upside down" or "underwater" on your loan). This can be a problem because:

• If you trade in your car, the extra debt doesn't disappear—you still have to pay it somehow.
• If you roll that debt into a new car loan, your new loan becomes even bigger, making payments higher and interest costs worse.
• Since cars lose value over time (depreciation), this cycle can keep getting worse.

If things spiral out of control, you might struggle to make payments, leading to repossession (your car being taken away) or even bankruptcy (serious financial trouble).

The Solution: Leasing a Chevrolet Electric Vehicle (EV)

Instead of taking out another big car loan, Chevrolet (through GM Financial) offers a way to lease an electric car while also handling your negative equity more affordably.

Here's how it works:

• GM lets you roll some negative equity into a lease (up to 110% of the car's price).
• Since leases have lower interest rates than regular loans, you pay less in financing costs.
• Leases are short-term (like 24 months), meaning you won't be stuck in long-term debt.
• At the end of the lease, your negative equity is gone, and you're free to move on.

Example: Leasing a 2024 Equinox EV

Let's say you lease a 2024 Chevrolet Equinox EV with these terms:

• Monthly payment: $299 for 24 months
• Due at signing: $4,169 (after all offers)
• You can roll up to $4,190 of negative equity into the lease
• Some discounts/incentives (like a $1,500 discount) can make the payment even lower

If you roll in $4,190 of negative equity, your monthly payment increases slightly, but at the end of 24 months, you're no longer stuck in debt from your old car. For the latest offers, check out Chevrolet’s official deals page.

Make the Switch to EVs and Save Big

Now’s the perfect time to lease a Chevy EV and save big! Take advantage of up to $11,500 in state and federal incentives, including the Charge Up New Jersey rebate (up to $4,250) and a federal tax credit of up to $7,500 on qualifying models.

Learn more about these incredible savings and find your perfect Chevy EV today!

Why This Makes Sense

• Lower interest rate than a regular car loan (saves money).
• Shorter time frame (only 2 years, so you're not stuck in long-term debt).
• Fresh start at the end of the lease with no leftover negative equity.
• Drive a new electric car in the process.

This strategy helps you escape negative equity while avoiding more financial strain. If you're in a tough spot with car debt, leasing an EV like this could be a smart move.

Take control of your financial future and break free from the cycle of negative equity. Leasing a Chevrolet EV offers a smart, cost-effective way to move forward without being weighed down by old car debt. Ready to explore your options? Browse our EV inventory at Hessert Chevrolet of Cherry Hill today, or give us a call—our team is here to help you find the best solution for your needs!