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Americans are underwater on car loans. They're buying new cars anyway.

More Americans are trading in underwater vehicles. That does not mean the vehicles are submerged. In a sense, the drivers are. More than one in four trade-ins had negative equity in the third quarter ...
Hosted on MSN

1 in 4 new car trade-ins are now ‘underwater’ — a 4-year high as more owners drag major debt into new buys. Here’s how to avoid drowning in auto loans

A growing share of car owners are underwater on their auto loans, reports the car-buying resource Edmunds. According to a second quarter report, 26.6% of trade-ins toward new-car purchases had ...
AOL

Many Americans are underwater on their car trade-ins and a growing number now owe record amounts. Should you be waiting to buy?

For years, car buyers have watched prices skyrocket and loan terms lengthen. Now, new data shows just how many drivers are feeling the squeeze. In the fourth quarter of 2025, 29.3% of trade-ins toward ...
USA Today

Underwater loans hit nearly one-third of car buyers

Nearly 30% of new car buyers in late 2025 were underwater on their trade-in loans. The average amount owed on these trade-ins reached a record high of $7,214. This trend is linked to high car prices ...