how can i finance a car purchase and not end up upside down on it?

i have a guaranteed 4.99% apr for 6 years

Public Comments

1. Make a large down payment and make sure the price they are selling it for is even or less than the NADA value.
2. The only way is to buy it below book enough so that at the end of the loan it is worth what you have paid for it. It is very hard to do unless you use a broker or can get into manufacturer auctions. Buy a car that will hold its value well like a Subaru, Toyota, or Honda and you should be in good shape. Nice work on the loan that is an excellent rate and term!! The best way is to check KBB values on what you are looking at and then compare it to the same car that is six years older.
3. if you go six years you will be upside down at some point guaranteed. if you want to not be upside down you should go no more than 3 years. figure that out for a payment. good luck
4. Pay a large enough down payment so that the amount you're financing is less than the actual value of the vehicle, taking into account the fact that the vehicle may depreciate as much as 20% as soon as you drive it away from the dealership. This is what gap insurance is for, to cover the difference between blue book value and loan balance in the event of a total loss.
5. Don't buy it. Lease it. Leases are designed so that you will never be upside down again! That's not to say you car trade in the car five minutes after you bought it and not be upside down, but if you honor the lease agreement to its end and don't go over your allowed miles, you'll never have to worry about being "upside down"