Americans Are More Upside Down on Car Loans Than Ever — And It’s Getting Worse

Americans are sinking deeper into auto debt. According to new data from Edmunds, the average amount owed on an “upside-down” car loan — when a vehicle is worth less than what’s owed on it — has reached a record high of $6,905. In the third quarter of 2025, 28.1% of all trade-ins toward new car …

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