If you owe more money on an auto loan than what the vehicle is worth, then you have negative equity. Having negative equity isn't exactly a problem. That is, until you need to trade in the vehicle.

A press release from Toyota this morning announced that the Prius had just surpassed the one million mark in world wide sales. This begs the question, “would the Prius be a good car for a bad credit car loan?”

You've decided it's time to get a new car. Even though you know you could probably get more for your current vehicle by selling it on your own, you've also decided that's probably too much of a hassle and, since you don't want to come up with a cash down payment, the only option that remains is to trade it in.

Negative equity, or being upside-down in a loan, can cause quite a predicament if you decide that you want to sell a car that has a lower value than what you still owe on the loan. The best way to deal with negative equity is to take preventive measures right in the beginning. However, if you find that you are upside-down in your loan, there are still actions that you can take.

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.