Negative Equity Car Lease. For instance, if the remaining payments on your auto loan amount to $20,000 and your vehicle’s market value is $15,000, you have a negative equity of $5,000. This is also referred to as being “upside down” on a loan.
Negative equity means you owe more than your car is worth when you go to trade it in. When you lease a car, you don't get to drive it as much as you want. The surplus debt is rolled into the finance of the new car.
