Americans are underwater on car loans. They're buying new cars anyway.

More Americans are trading in underwater vehicles. That does not mean the vehicles are submerged. In a sense, the drivers are ...

1 in 4 new car trade-ins are now ‘underwater’ — a 4-year high as more owners drag major debt into new buys. Here’s how to avoid drowning in auto loans

This is the highest share Edmunds has reported in four years, meaning a growing number of people are dragging additional debt ...
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'Underwater' car trade-ins are at a 4-year high: What that means when buying a new vehicle

About 26.6% of trade-ins toward new car purchases had negative equity in the second quarter of 2025, according to Edmunds. That is up from 26.1% in the first quarter of the year. Being "underwater," ...