Being upside down - or underwater - on a car loan is a situation in which you owe more money on a vehicle than what it is currently worth. This means that if you attempt to sell it, you still owe your lender money. In Travis' case, he had bought his car with no down payment and a payment plan of 60 months, and was about halfway through his loan. He owed thousands more than it was now worth.

The car you have runs well. In fact, it's a great car with plenty of nice features and it is perfect for all of your needs. But your financial situation has changed, and you need to trade it in. But there is a problem: You still owe money on it. The good news is that yes, you can trade in that vehicle. The bad news, however, is that there will be some drawbacks, especially if the reason you need to replace it is because you can no longer afford the payments. This is a factor you will need to thoroughly consider when determining what kind of car you can get to take its place.

Although the holiday originated in remembrance for fallen US servicemen, it's also become a day of family, good food, and the of occasional deal on auto sales.

Negotiating doens't come easy to a lot of people, but doing research and knowing how the play the game can make it that much easier for you to score a good deal on your trade-in.

Speaking of bad credit cars, the one area that horrible credit auto loans buyers need to pay attention to is vehicle maintenance – something that's very important, since a number of repossessions result from car breakdowns. After all, who wants to continue making payments on a vehicle that doesn't run?

As with anything else, the key to a successful second chance car loan is focusing on the basics. In this case, this means being aware of lender requirements for an equity down payment on the loan including equity in your trade in vehicle.