An adverse equity car loan does occur whenever your loan surpasses the car’s value that is total. A car or truck customer with such financing eventually ends up overpaying for a car and makes a loss after attempting to sell it. How can a customer end up getting a loan that is upside-down? Those who come across severe difficulties that are financial using no cash down car and truck loans. Why? It’s because the collecting rate of interest becomes greater than the rate of financial obligation payment.