Even if you don’t know what being upside-down on a car loan is, you can probably guess it's not a good thing. The fact is it isn’t, but depending on your circumstances, it might not be the worst scenario. Many people are upside-down on their car loans right now and don’t realize it. And they might never realize it because it neither affects them financially nor calls for any change in how they manage their finances. To these people, being upside-down on their car loan is not an issue. In this article, we will tell you what it means to be upside-down on a car loan. We will tell you who it affects and how to avoid being upside-down in the future.