First thing's first, what is an appraisal and why does my vehicle need it? Well, if you are looking to get out of a vehicle you either own free and clear or have a loan on, appraisals are the best way to determine how much your vehicle is worth. Appraisals help insurance companies determine a vehicle's fair value and the cost of any repairs it may need if it was ever involved in an accident. This is extremely useful information because sometimes repairs cost more than what the car is worth, which would play a big role in your car-buying journey. You can get a vehicle appraised online, at a dealership, or through a paid professional. Though online appraisals are a great way to get an idea of your vehicle's current value, a face-to-face, physical appraisal is the best way to assess the vehicle. No matter where you decide to get your vehicle appraised, always try and get it in writing. If you like the appraised value, a written appraisal can be used as leverage when trading in your vehicle. If you decide you want more than one appraisal just to compare and to get the most value for your vehicle that is an option as well.
As a credit union, We Florida Financial, we will finance negative equity on a case-by-case basis. What does that even mean? If your vehicle is currently financed and you get an appraisal that values your car less than the balance of your loan, that balance normally has to be paid off before the new loan commences, the difference in value and loan balance is negative equity or the widely used term "under water" or "upside down". We will not put the old loan on top of the new one. All of these details are good to know to ensure you are setting yourself for a loan that is affordable. If you are upside down in your loan you may want to consider paying down the loan before proceeding; unless you have the funds to cover the difference. In short, if you have a vehicle whether it is financed or owned free and clear, get an appraisal. Information is power and may save you a lot of money down the line. Here at We Drive we strive to keep our members well informed and educated to ensure that their next auto-buying experience is nothing less than flawless!