Americans Increasingly Upside Down on Auto Loans as Used Car Values Fall

[Sherminiator]

https://www.foxbusiness.com/economy...de-down-on-auto-loans-as-used-car-values-fall

Now, the average amount consumers owe on upside down loans is at a record high of $6,064, up from $5,347 in fourth-quarter 2023 and $4,143 in 2021, the data found.

"A storm is brewing in the used market as incentives and inventory continue to trickle back into the new vehicle market," said Ivan Drury, Edmunds' director of insights.

"With demand for near-new vehicles on the decline, used car values are depreciating similarly to the way they did before the pandemic, and negative equity is rearing its ugly head," he added.

Edmunds analysts found the consumers most vulnerable to falling underwater on their auto loans are those who purchased new vehicles for above sticker price, because those newer trade-ins are seeing the steepest decreases in value.

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[GI_Jo_Nathan]

Sounds about right.

 

[atlawson]

Now if only new car prices would start to drop and correct to the market value as well, that would be awesome. Almost 100k for a nonluxury vehicle is ridiculous IMO.

 

[HighVelocity]

People who paid ADM are upside-down on loans? SHOCKING DEVELPOPMENT!

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