Tag

Negative Equity

All articles tagged with #negative equity

business1 day ago•5 min saved

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

business1 month ago•3 min saved

Car Trade-Ins Leave Buyers Underwater, Owing Thousands

Edmunds data for Q4 2025 show 29.3% of trade-ins were underwater — nearly a record high — with the average underwater balance at $7,214 and more than a quarter carrying over $10,000 in negative equity. Those rolling it into new loans faced an average monthly payment of $916, with about 40.7% choosing 84‑month terms. The trend traces to pandemic-era pricing and limited leasing options; relief may come from MSRP-friendly deals, but many cars will remain underwater until depreciation slows enough for the balance to fall below value.

via Jalopnik|

#auto-loans #business #edmunds

business7 months ago•1 min saved

Rising Auto Debt Leaves More Car Owners Underwater

A growing number of U.S. car owners are underwater on their auto loans, with over 25% of trade-ins in negative equity, leading to higher monthly payments and potential debt cycles, driven by high car prices and loan rates, according to Edmunds.

via Axios|

#auto-debt #business #car-prices

business8 months ago•4 min saved

Receptionist's Quick Action Foils Car Sale

A car salesman warns against other dealership employees interfering with ongoing sales, highlighting a case where a receptionist's attempt to lower a customer's payment led to the customer leaving, illustrating the importance of respecting sales boundaries and the impact of negative equity and inflation on car buying decisions.

via Motor1.com|

#business #car-sales #customer-service

financeeconomy2 years ago•2 min saved

"Rising Negative Equity: The Growing Challenge of Underwater Car Loans"

As used car prices continue to fall, more people are finding themselves underwater on their car loans, with the value of their trade-ins not covering the remaining debt. This trend is particularly affecting newer vehicles, as the depreciation is hitting them the hardest. While there are significant discounts available for luxury and large mainstream vehicles, those seeking more affordable transportation may struggle to find similar savings due to restricted supply. Overall, the current market conditions are making it challenging for many consumers to find good deals on both new and used cars.

via Jalopnik|

#car-loans #depreciation #financeeconomy

finance2 years ago•3 min saved

The Challenges of Obtaining Car Loans in a Cautious Lending Market

While more cars are becoming available and prices are stabilizing, potential buyers are facing challenges in obtaining auto loans. The rejection rate for auto loans has risen to its highest level since 2013, with lenders becoming cautious due to borrowers' struggles with inflation, interest rate surges, and increasing debt. The market for auto financing is experiencing a rise in delinquency and default rates, leading to concerns about negative equity. Many lenders have scaled back or eliminated auto lending, further limiting options for consumers and potentially increasing interest rates. To navigate these challenges, consumers are advised to consider alternative financing options and be mindful of the overall cost of the loan, including the APR.

via USA TODAY|

#auto-loans #borrowing-challenges #car-prices

finance2 years ago•6 min saved

"Negative Equity Storm: How to Protect Your Used Car Investment"

Drivers who took on auto loans at high interest rates and paid sky-high prices for cars could face some headaches down the road as car values pull back in an economic slowdown. Negative equity — or owing more on your car than it's worth — is building, particularly in used cars bought by subprime borrowers. The auto industry pays close attention to loan-to-value ratios — the difference between the loan amount and the market value of the car. The higher the number, the more vulnerable the consumer. As vehicle values have declined in recent quarters, used car loan-to-value ratios at origination have trended upward.

via Detroit Free Press|

#auto-loans #finance #loan-to-value-ratio