Are You Upside-Down on Your Car Loan?

First, a definition. What does the phrase “upside-down” or “underwater” actually mean when it comes to a car loan? The problem arises when the borrower owes more money on their loan than the car is actually worth. For example, if you have an accident and your car can’t be repaired, it may be worth close to nothing, but you may still have thousands of dollars left to pay your lender even after insurance pays your claim.

This scenario can happen even without a catastrophic event like an accident. Say you are moving to a new city where you don’t need a car and need to sell yours to help pay for moving expenses. Even if your car is fairly new and in excellent shape, you may not be able to sell it for enough money to pay off what you owe. New cars depreciate—or lose value—quickly, and in every case, you will still need to pay the lender back what you owe, regardless of how much it’s worth today.

Don’t forget that your car is an asset just like anything else you own, and its value is affected by market conditions. If your car is no longer as popular—perhaps because a newer model has been released or it has received some negative publicity—it will fall in value, regardless of the amount you still owe. The value might also decline faster than your loan balance declines if the car has higher mileage or is in poorer condition than average. Also, keep in mind that the portion of the loan that covers financing fees and add-ons are nearly impossible to recoup even when reselling the most desirable car out there.

Consider Refinancing

You may be tempted to get out of your loan by trading in your car for another. Your dealer can present an attractive option: rolling the amount you owe on your old car into financing for the new one. Since the dealer is in the business of selling cars, they are motivated to get your new sale and trade-in, even if it puts you even further under water by combining your debt.

You are much better off refinancing your car through a company like RefiJet, which can vet your application through its wide network of lending partners to get you the best possible deal for which you qualify. This is especially true if financial markets have changed or your personal financial situation has improved, which may help to qualify you for a lower rate or monthly payment.

When you refinance, you have the option of paying off some principle so you can get to the point where you’re no longer upside down. If you do decide to refinance, it’s a great time to consider adding GAP coverage, which pays the difference between what you owe and what the vehicle is worth in the event it is stolen or totaled.

With the help of a refinancing package and some diligent financial decisions, you can eventually put your upside-down status behind you and start on a fresh path toward better financial health. Your future self will thank you.

Important Disclosures and Requirements

Federal ESIGN Disclosure and Consent 

 Electronic Consent:  Consent to Receive Information Electronically 

The Electronic Signatures in Global and National Commerce Act requires users of this Site who submit a Contact Form (“you” or “your”) consent to receive certain disclosures electronically. Please read this disclosure and consent carefully and retain a copy of this document for your records. 

ELECTRONIC RECORDS 

Some communications with and disclosures by Yield Solutions Group, LLC dba RefiJet.com (“RefiJet.com” or “us” or “we”) on its behalf and on behalf of participating banks, finance companies, and credit unions (hereinafter called “Lenders”) are conducted electronically. In order to access, receive and retain required notices and your documents, including, any notices and disclosures required by state or federal law, such as our Privacy Noticeloan documents and disclosures that we provide to you on behalf of any Lenderand any other transaction notices and information from us (collectively, “Documents”) electronically, you must satisfy the minimum system requirements outlined below. However, if you wish to obtain a paper copy of any Documents that RefiJet provides you in connection with your credit inquiry and any subsequent application to our Lenders, you may contact Yield Solutions Group, LLC (dba RefiJet.com) in writing at 5775 DTC Blvd Suite 400, Greenwood Village, CO 80111 or by email at Info@RefiJet.com. We currently do not charge a fee to send you a paper copy of any electronic Document, but reserve our ability to do so. Be sure to state which of the Documents you are requesting.  

RefiJet.com reserves the right, in its sole discretion, to stop providing Documents electronically. RefiJet may also send Documents to you in paper form because we are legally required to do so or because we determine in our sole discretion that you should receive the Documents in paper rather than electronic form.  RefiJet.com will provide you with notice of any such termination as required by applicable law. If RefiJet.com chooses to stop providing Documents electronically, RefiJet.com will send any future Documents to you in paper form. Certain disclosures, however, will be made to you verbally if permitted by applicable law (the “Verbal Disclosures”).   

YOUR CONSENT IS REQUIRED 

You must consent to receive Documents electronically in order to complete the credit inquiry process with RefiJet.com and any subsequent loan process with one of our participating Lenders. Your consent will apply to Documents as defined above. You may withdraw your consent for receiving electronic Documents by notifying us in any of the ways described above. Since RefiJet.com is structured to process all or part of your credit inquiry and any subsequent loan  electronically, not consenting, or withdrawing your consent to receive electronic Documents may result in the termination of the credit inquiry and/or loan process. Your withdrawal of this consent is effective only after we have had a reasonable period of time to act upon your withdrawal. Even if you consent, note that the Verbal Disclosures will be made to you telephonically. 

If you wish to withdraw your consent to do business electronically with our participating Lenders, you may do so at no cost to you by contacting the Lender at the mailing address, email address or telephone number they provide to you separately for such purpose.  

CONSENT TO RECEIVE DOCUMENTS ELECTRONICALLY 

In order to use this service, you must consent to receive Documents electronically and you agree that these electronic disclosures will be sufficient as a “writing” under applicable law.  

HARDWARE AND SOFTWARE REQUIREMENTS 

In order to receive, access and retain electronic Documents, you will need the following hardware and software: 

  • a computer, mobile device, tablet or similar device with an internet connection; 
  • a current web browser that supports HTTPS connectivity;  
  • a current version of a software program that can open and display PDF files (such as an Adobe Acrobat reader); 
  • a valid email address with email software to communicate with us electronically; and 
  • an installed printer or sufficient storage space to save, store, print or otherwise retain electronic Documents. 

 These disclosures and the Documents are both provided to you in PDF; therefore, your access to this page from your own system/device verifies that your system/device has the necessary software to permit you to receive and access PDF files. 

If the system requirements for accessing the copy of your Documents on the secure webpage change so as to require different or additional hardware or software, or upgrades, plug-ins or enhancements to the hardware or software used by you (all such changes referred to as a “Systems Enhancement”), we will notify you and you may either withdraw your consent or upgrade your hardware and/or software as required by the Systems Enhancement.  

This consent is valid until revoked by either party. 

It is important that you keep your email address current with us.  Please notify us at 1.800.260.5355 if your contact information changes at any point in the refinance process.  We may treat your failure to provide us with a valid email address, or the malfunction of the email address we have for you, as a withdrawal of your consent to receive Documents electronically. 

System Requirements to Retain Information 

If you have a valid email address, a copy of the loan Documents will be provided to you upon execution in the form of an email link to a secure portal that will contaithe PDF loan documentsYou will log into the secure portal using your access credentials. The PDF document will be available to you in the secure portal for thirty (30) days. To retain a copy of the Documents, you may choose to print them, save them or both. In order to print them, you must have a functioning printer connected to your personal computing device.  If you wish to retain an electronic version of the Documents, you must have a personal computing device with the hardware and software necessary to download and store PDF files. 

By clicking to accept, you: 

  • acknowledge your receipt and review of the foregoing Federal ESIGN Disclosure and Consent; 
  • give your affirmative consent to our providing electronic Documents to you as described above; and 
  • confirm that your computer or access device satisfies the hardware and software requirements needed to access and retain the Documents that will be provided to you in electronic form, including through use of a valid email address to access a link to secure portal to access the Documents. 

If you do not click to accept you are not consenting to our providing electronic Documents to you as described above, and you are terminating your transaction with us