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Record Debt and Delinquencies Rise Among Car Trade-Ins

10/16/2025

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Summary

Story summary

Edmunds data show 28.1% of trade-ins in Q3 2025 had negative equity, a rise from 26.6% in Q2 2025.
The average debt on underwater loans reached a record $6,905.
Car prices average over $50,000 and monthly payments rise to about $766.
Auto loan delinquencies have surged, with quick trades and pandemic-era loans contributing, complicating future vehicle purchases.

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Story summary

Edmunds data show 28.1% of trade-ins in Q3 2025 had negative equity, a rise from 26.6% in Q2 2025.
The average debt on underwater loans reached a record $6,905.
Car prices average over $50,000 and monthly payments rise to about $766.
Auto loan delinquencies have surged, with quick trades and pandemic-era loans contributing, complicating future vehicle purchases.