Upside down is for cakes!

Jack and Jill came in yesterday and traded their old cars for two brand new, identical Hondas. Jack’s new payment is $400. Jill’s new payment is $300. Jack’s payment is higher because he was upside-down…his trade-in was worth less than the amount he owed the bank. The difference had to be added to the price of his new car. Jill’s trade-in was a leased car with a guaranteed value. The benefits of leasing are no fairy tale.