A General Motors dealership at the Troy Motor Mall in Troy, Mich., on Aug. 17, 2010. Bill Pugliano/Getty Images
Car buyers rolled a record amount of negative equity into new auto loans in the first quarter, and longer loan terms are increasing the amount of debt consumers bring to new loans, automotive pricing and insights company Edmunds said on April 20.
The average negative vehicle equity—also called being “underwater” or “upside-down” in automotive financing parlance—for vehicles whose loans are underwater at the time of trade-in jumped to $7,138 in the first quarter, the highest amount ever recorded in the first three months of a new year and a 42 percent spike from the same quarter in 2021, Edmonds researchers said.
