Direct answer
It may not be necessary if your down payment was substantial enough to ensure your loan balance stays below the car’s market value from the start.
Consumer auto finance guidelines regarding equity and vehicle depreciation curves. For additional information about how vehicle depreciation impacts your equity and loan balance, see the Consumer Financial Protection Bureau‘s guide on auto loans.
What this means for you
It may not be necessary if your down payment was substantial enough to ensure your loan balance stays below the car’s market value from the start.
FARMER STOCKMAN
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This page is informational and not a coverage guarantee or quote.
