'Underwater' car trade-ins are at a 4-year high: What that means when buying a new vehicle [View all]
More drivers across the country are "underwater" or "upside down" on their auto loans — meaning they owe more money than the car is worth. That's costing them when it comes time to buy a new car.
About 26.6% of trade-ins toward new car purchases had negative equity in the second quarter of 2025, according to Edmunds, an auto site. That figure is up slightly from 26.1% in the first quarter of the year, and the highest it's been in the last four years, said Ivan Drury, the director of insights at Edmunds.
Such drivers are not underwater by insignificant amounts. The average amount owed on upside-down loans in the second quarter was $6,754, down slightly from the prior quarter's $6,880, Edmunds found.
"It's a staggering figure to look at," said Drury.
https://www.msn.com/en-us/money/markets/underwater-car-trade-ins-are-at-a-4-year-high-what-that-means-when-buying-a-new-vehicle/ar-AA1Mx6YI
Because of higher auto prices there are loans that take as long as seven years to pay back. Not surprising many vehicles are underwater.
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