You might be able to trade in a car with negative equity, but it doesn’t always make sense ...

In the fourth quarter of 2025, 29.3% of trade-ins toward new car purchases had negative equity, according to new data from car website Edmunds. The average amount owed on trade-ins with negative ...

If your car's current value is less than the amount you owe, you have negative equity. This is also known as being upside down on your auto loan. When the time comes to purchase a new car, having ...

If a person owes more on a car than it’s worth, they have negative equity or are considered underwater on their auto loan. Equity for vehicles equals trade-in value minus the loan balance. Let’s say ...

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 ...

Getting your hands on a brand new (or new-to-you) car is a great feeling. Not so great is the realization that you owe more on the loan for your old car than the vehicle is worth when you come to ...

Negative equity can be significant hurdle to clear when dealerships handle trades, as Edmunds recently reported 7.7% of trade-ins toward a new-vehicle purchase during the second quarter were upside ...

The newest auto-finance data Edmunds released on Wednesday focused specifically on new-vehicle purchases and excluded used. But it still showed the conundrum lenders are facing nowadays associated ...

Edmunds reported that Americans are trading in vehicles with record-high negative equity, leading to a never-ending mountain of debt The number of Americans who owe more on their car loans than their ...

Negative equity is when you owe more on a car than the car is worth, leaving you "upside down" or "underwater" on your loan. This continues to be a growing problem, as is the amount of negative equity ...