What is equity on a car?

Equity on a car refers to the difference between the current market value of the vehicle and the amount owed on any loans or financing used to buy the car. If the car's market value is higher than the amount owed, then the car owner has equity in the car. This equity can be leveraged in various ways, such as refinancing the car loan or using the car as collateral for a new loan. Equity can also be used towards the purchase of a new car or even as a down payment on a house. However, it's important for car owners to regularly monitor the market value of their vehicle to ensure they have a clear understanding of their equity position.