An adverse equity car loan happens when your loan surpasses the car’s value that is total. A car or truck customer with such that loan ultimately ends up overpaying for a automobile and makes a loss after offering it. So how exactly does a customer end up getting a loan that is upside-down? Those who come across severe financial hardships after taking no cash down auto loans. Why? It’s because the collecting rate of interest becomes greater than the price of financial obligation payment.