How do I stop being upside-down on my car loan?

Being upside-down (underwater) means you owe more than the car is worth, common when you finance with little down over a long term. To dig out, avoid rolling negative equity into a new loan, and instead make extra principal payments to catch the balance up to the car's value faster. You can also pay a lump sum, keep the car longer so depreciation slows while you pay down principal, or, if the gap is small, sell privately for more than a dealer trade-in and cover the shortfall. Going forward, put at least 20 percent down, keep the term to 48 to 60 months, and skip add-ons rolled into financing. Gap insurance protects you only if the car is totaled, not from the underwater loan itself.