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 ...

Negative equity, or being upside-down on your auto loan, means owing more on your vehicle than its current value. Some dealers might accept trade-ins with negative equity if you pay off what you owe ...

Negative equity in old cars being traded in for new cars is at an all-time high. According to a new study from Edmunds, 24.2 percent of trade-ins have negative equity, and the average amount of the ...

New data and analysis from Edmunds and Cox Automotive’s Kelley Blue Book focused on new-vehicle financing, reinforcing how difficult it might be for consumers with subprime credit to take delivery of ...

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 ...

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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 ...

What happens if your car has negative equity? A viral video lets people know that sometimes your car is worth less than the amount you owe on your auto loan. In the video, Payne explains to a sales ...

The average customer with negative equity had a lower credit score, accepted a longer loan term and was more likely to have a co-signer compared with other vehicle shoppers, according to a new ...

You might be able to trade in a car with negative equity, but it doesn’t always make sense Written By Written by Staff Loans Writer, Buy Side Emily Sherman is a staff loans writer for Buy Side, ...