Americans Owe More Than Their Car Is Worth As 'Upside-Down' Loans Are On The Rise

A growing number of U.S. consumers owe more on their auto loans than their vehicles are worth, according to Edmunds.com. The average negative equity in auto loans increased during the third quarter of 2023 compared to the previous quarter and the same period a year earlier.  Edmunds reports over one in five consumers with negative equity owe more than $10,000 on their loans, with 7.5% owing over $15,000. The rise in upside-down loans is adding to pressure on American consumers, who are also facing higher delinquency rates on auto loans.