I was approved for a loan with USAA recently. However, when I trade in my current car I will be upside down in the loan but 6-8k. I am more than willing to pay that but my concern is that USAA will not give final approval on the loan because it will make the loan over the value of the new car. I don't have the option to pay that off. How is this usually worked out? I know people who go upside down and have no issue getting a loan. I am just concerned and don't want to get my hopes up looking at the car I want to purchase. How likely is it USAA will allow me to go upside down in this?


Hello mom_of_pandp, Congratulations on your approval. When approved for a loan, you will be provided with a max loan to value based on your overall credit profile. The approved max loan to value percentage will determine how much above the determined value of the car you are able to borrow.

It may be possible to roll in some or all of the negative equity based on your approval. Any amount above the max approved amount would then need to be covered out of pocket as a down payment or direct payment to your loan prior to trading in the car.

To run the numbers for you and provide you with details regarding the max amount you will be able to finance we would just need for you to give us a call with information on the vehicle (year, make, mode, VIN, mileage). ~ Lori

So your saying as long as I dont go over the max loan amount I "should" be able to roll over that portion of the loan?


Possibly. There are many variables. Since the financed amount will be largely determined by the selected vehicle's value, we would need to have the vehicle information. Please give our lending team a call so we can run those numbers for you. ~ Lori

I'm a veteran myself, USAA member and I also happen to work at a dealership that sells at thousands below invoice.  USAA does not make it easy to buy new.  Feel free to give me a call before you do anything.  Your negative equity isn't much of a problem at all and we deliver nationwide.  My contact:


USAA and True Car are in a business relationship as told to me by someone who identifed himself as an Air Force Veteran, representing the CEO, Stuart Parker. Our personal information is entered into the True Car data base and given to a dealer. So even we do not use USAA True Car, our leverage to negotiate is now hampered because of this as $400.00 will automatically go to True Car on our behalf.