Reported 16 days ago
A growing number of Americans are trading in cars with underwater loans, meaning they owe more than their vehicles are worth. As of the third quarter of 2025, over 28% of trade-ins were underwater, which is the highest rate in four years. Borrowers are faced with increasing loan amounts and higher interest rates, leading many to opt for new vehicles despite the financial implications. To manage negative equity, experts suggest making larger payments, refinancing, or simply holding onto the vehicle longer.
Source: YAHOO