The recent collapse of the U.S. car market has resulted in a harsh reckoning for consumers, with one in three Americans trading in a car this year owing more on the loan than the car is worth, according to Edmunds. The company's trade-in numbers reveal that 30.9% of borrowers who traded in a vehicle for a new one had negative equity, meaning they owe more on their old loan than their new one was worth. The average shortfall hit $7,183, the second-highest reading on record and a 42% jump from 2021. The price of the average car was also set at an all-time high of $932. The car-shopping data firm also revealed that 30% of buyers with negative equity financed an average of $55,970 for new cars last quarter, around $12,000 more than a typical new-vehicle buyer. Auto loan defaults rose to an annualized 3.79% in March, the highest level since early 2010. The result of the pandemic car bubble is blamed on a surge in car sales and increased interest rates. The industry now resembles a mortgage industry, with auto-area dealer group Tamararina Group.