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Underwater Loans

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Record-high negative equity drives bigger loans in 2026 car market
business24 days ago

Record-high negative equity drives bigger loans in 2026 car market

Edmunds reports a record $6,884 average negative equity on traded-in cars in Q2 2026 as buyers roll remaining loan balances into new auto loans, with new-car prices near $50,000 and about 30% underwater. The top models with the highest negative equity are the Chevrolet Silverado 1500, Ford F-150, and Ram 1500, and longer loan terms amid higher interest rates are boosting total interest paid as buyers carry over debt into newer vehicles.

via USA Today|
#business#edmunds#f-150
Record Auto Debt Pushes Buyers Underwater as Negative-Equity Reaches All-Time High
business5 months ago

Record Auto Debt Pushes Buyers Underwater as Negative-Equity Reaches All-Time High

Edmunds data shows U.S. buyers are drowning in negative equity on new-car trades: Q4 2025 averaged $7,214 underwater, with 29.3% of trade-ins underwater—an all-time record. The piece argues dealers’ use of “creative” financing and consumer demand for larger, feature-rich vehicles help drive the problem, a trend the industry is finally acknowledging as affordability becomes unsustainable. A personal anecdote about financing a $40k truck with a $25k value and poor credit highlights how predatory-feeling practices can be, and the story notes that EV buyers have also faced large underwater loans. The author suggests buyers lower expectations and spending, while automakers and dealers must prioritize real affordability to curb rising debt.

via InsideEVs|
#affordability#auto-financing#business