Seventh, it probably comes from being upside-down on the current loan. It's hard to say, I've never rolled an upside-down loan into a new car so I don't know how that is handled.
Personally, I think the OP's friend made the right decision. You don't really want to be upside-down, so it's better to get that paid down and move on to another car later with a down payment. If you're upside-down and someone wrecks your car, you better have gap insurance!
'13 GT Premium DIB
Ordered 5-7, Built by 5-31, Shipped 6-8, ETA 6-22, arrived 6-21