I’ve encountered people that dont actually know either how being upside down works, or why you get upside down. Take my sister for instance. She doesnt get how you can be upside down on a loan. Her line of thinking is this: the bank is loaning you the money to buy the car. So why does the bank/lenders tie the depreciation of the car into the loan? It makes no sense to her and I’ve given up trying to explain it to her. But anyway back to my point..

When I say subjective I mean as far as the dealer is concerned when giving you a trade in value for the vehicle. Say for instance, you have a car with a Blue Book value of about 3 gran, and you still owe about 6200 on your loan. We all know dealers will rarely come close to market value on most cars. So if that cars Blue Book value is 3 grand, a dealer is going to offer you 1500. Maybe 2 thousand. So one dealer offers you 1500 and tells you you are upside down 4700. You go to another dealer and they offer you 2500 and tells you you are only underwater 3700. It varies dealer to dealer from what I’ve seen, with some making it seem worse than it is for whatever reason.

So do you guys think being underwater is subjective when it comes to dealers placing a value on your vehicle?