Page 7 - Microsoft Word - Automotive 101 Worksheet.docx
P. 7
What is Certified Pre-Owned (CPO) Car?
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List three Benefits of a CPO:
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What does it mean to have negative equity in your vehicle?
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What does it mean to have positive equity in your vehicle?
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Example:
John owes $18,000 to Bank of America to pay off his car. John gets his vehicle appraised and the Sonic store and we value his vehicle at $15,000, That mean John has $3000 negative equity in his vehicle. If John’s vehicle was valued at $18,000 but he only owed $15,000, that would be considered positive equity of $3000.
