No. of Recommendations: 0
...how many people would simply hand over the keys, and walk away?
Underwater and Sinking Deeper: The Average Amount Owed on Upside-Down Auto Loans Climbed to an All-Time High of $6,905, According to Edmunds
More than one in four new vehicle trade-ins are underwater, a four-year high. 28.1% of trade-ins toward new-car purchases had negative equity, up from 26.6% in Q2 2025 and 24.2% in Q1 2025. This is the highest share Edmunds has on record since Q1 2021, when 31.9% of new-car trade-ins were upside down.
Americans with upside-down car loans owe more than ever. The average amount owed on upside-down loans hit a record $6,905 in Q3, edging past the previous high of $6,880 set in Q1 2025.
Nearly one in three underwater car owners owe between $5,000 and $10,000 in debt — a new record high. 32.9% of negative-equity trade-ins fell into this range in Q3, up from 32.6% in Q2 and continuing a steady climb since last year.
A record share of underwater car loans are carrying five-figure debt. Nearly one in four (24.7%) trade-ins with negative equity carried more than $10,000 in debt in Q3, surpassing the previous high of 24.6% set in Q4 2024. Another 8.3% of trade-ins with negative equity carried more than $15,000 in debt, up from 7.7% in Q2 2025.edmunds.com - Underwater and sinking deeper the average amount owed on upside down auto loans climbed to an all time high ofOf course, if they turned in their keys, how do they get to work? The Detroit burb I live in has zero public transit, as a for instance. Meanwhile, automakers pay lip service to "affordable" cars, while cutting their lower priced models to juice their ATP and GP.
Steve
