Negative equity is hitting record levels as more U.S. car buyers trade in vehicles they owe more on than they’re worth.

Having an upside-down car loan, or negative equity, doesn’t exclude you from trading in your vehicle. You can trade in a car ...

Negative equity happens when the value of an asset, like a car or home, is less than the remaining balance on the loan used to buy it. This is also known as being “underwater” or “upside down” on a ...

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 of 2025, Edmunds reports. In auto industry parlance ...

Two elements of auto financing clearly surfaced when Edmunds reviewed its second-quarter data. Analysts found that negative equity is still a notable factor, and consumers are often seeking elongated ...

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 of 2025, Edmunds reports. In auto industry parlance ...

Homeowners with mortgages, which account for roughly 63% of all properties, collectively gained $1.5 trillion in equity since the first quarter of 2023, an average increase of $28,000 per borrower. As ...

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 ...