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The number of automobile owners trading in vehicles with negative equity continues to rise, with 29.6 percent of trade-ins in the second quarter showing more money owed on existing auto loans than the vehicles were worth, according to automotive insights platform Edmunds’s July 16 vehicle transaction report.
Negative equity also pushed average monthly payments on “underwater” trade-ins to $944 in the quarter, the highest figure on record, the report said.
That’s $167 more per month than trade-ins without negative equity considerations, and those higher loans are expected to account for an additional $16,270 in interest paid over the loan term—another record high that’s nearly $6,500 more than the average new-vehicle loan issued during the quarter. …
Negative equity also pushed average monthly payments on “underwater” trade-ins to $944 in the quarter, the highest figure on record, the report said.
That’s $167 more per month than trade-ins without negative equity considerations, and those higher loans are expected to account for an additional $16,270 in interest paid over the loan term—another record high that’s nearly $6,500 more than the average new-vehicle loan issued during the quarter. …
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