Getting your hands on a brand new (or new-to-you) car is a great feeling. Not so great is the realization that you owe more on the loan for your old car than the vehicle is worth when you come to trade it in at your local dealer. That’s all too common, and the dollar amount people are underwater by is the highest it’s ever been.
One in four (24.9 percent) trade-ins was underwater in Q4, an increase from 24.2 percent in Q3 and 20.4 percent in Q4 2023, a study by Edmunds has revealed. And while that’s not quite the worst the industry has seen, what is at record level is the amount owed on those loans.
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