Will I Be Underwater?
A loan is “underwater” when you may owe more than the car is worth. Compare the loan balance with the car's estimated value before you commit.
Set the numbers you know.
We start with 8.5% yearly loan interest and a 72-month loan. You can change both.
Asking $229,900 · 2-year ownership
After paying off the loan, the estimated sale leaves about $74,458.
- Estimated car value when you sell
- $207,116Estimated range: $197,680–$218,439Based on 27 similar cars; estimate for when you sell
- Amount you may need to pay when selling
- $0Estimated loan balance minus estimated car value when you sell
- Monthly payment
- $3,270$183,920 loan amount
- Loan balanceEstimated loan amount left to pay when you sell
- Estimated car valueEstimated value range when you sell
These numbers are rounded to whole dollars. The result uses the assumptions above. Replace them with your actual quotes before buying.
Common questions
Before you use your estimate.
How do I know if I may owe more than the car is worth?
You may owe more than the car is worth when the estimated loan balance on your planned sale date is higher than the car's estimated value. The calculator shows the difference as the cash you may need when selling.
How is the loan balance when I sell calculated?
The estimate uses the asking price, down payment, annual percentage rate (APR), loan length, and years before you sell. APR means the yearly interest rate on the loan. It does not include prepayment penalties or lender-specific fees.
Where does the estimated car value when I sell come from?
The estimate starts with the selected car, mileage, and planned ownership period. The actual sale price will also depend on condition, options, history, and the market when you sell.
Can a low monthly payment still be risky?
Yes. A long loan can lower the payment while slowing principal payoff. If the car loses value faster than the balance falls, selling early may require extra cash.