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25% of New-Car Buyers Face Debt Crisis Amid Price Surge

3/5/2026

39 7 Full Breakdown

Summary

Story summary

Over 25% of U.S. new-car buyers are underwater on their loans.
Many are rolling over $10,000 in debt, driving a negative equity rollover above $7,000.
Since 2005, underwater trade-ins have risen, with the Great Recession and COVID-19 briefly reducing sales.
Demand for used cars has driven prices up and is now declining.
A surge of used electric vehicles could ease prices.

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Story summary

Over 25% of U.S. new-car buyers are underwater on their loans.
Many are rolling over $10,000 in debt, driving a negative equity rollover above $7,000.
Since 2005, underwater trade-ins have risen, with the Great Recession and COVID-19 briefly reducing sales.
Demand for used cars has driven prices up and is now declining.
A surge of used electric vehicles could ease prices.