Record Underwater Debt Rolled Into New Auto Loans in 1st Quarter: Report
By Rob Sabo
Published on April 21, 2026.
The average negative vehicle equity for vehicles whose loans are underwater at the time of trade-in has risen to $7,138, the highest amount ever recorded in the first quarter, according to automotive pricing and insights company Edmunds. This increase is attributed to longer loan terms and a decrease in the amount of debt consumers bring to new loans. The average cost of the new loan is also rising, with a 42% increase from the same quarter in 2021.
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