A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans

“Suburbia is full of nice cars these days. But those cars come at a steep price for many.

Debt is a drug.”

(From The Wall Street Journal)

Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000.

https://www.ac2news.com/2019/11/a-45000-loan-for-a-27000-ride-more-borrowers-are-going-underwater-on-car-loans/