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

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 ...

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

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 ...

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 ...

Along with more insight about how much negative equity is an industry hurdle, the latest auto finance data from Edmunds highlighted how affordability challenges triggered by stubbornly high interest ...

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 ...