Car Owners Under Water: Survey Reveals Growing Negative Equity Among Drivers
Growing Concern Among Car Owners
A recent survey by CarEdge reveals alarming trends in car financing. As vehicle prices soar and depreciation accelerates, more car owners are finding themselves owing more on their loans than their cars are worth.
Key Findings from the Survey
- 31% of all drivers who financed their cars are currently in negative equity.
- 39% of those who purchased vehicles in the past two years face similar challenges, making new car buyers vulnerable.
- Electric vehicle owners exhibit the highest negative equity rates—46% of EV owners are reported under water.
The Overvaluation Dilemma
Among the respondents, a striking 61% of drivers overestimate their vehicles' worth. Approximately 17% believe their cars are valued at least $5,000 more than their true trade-in value, leading to potential unpleasant surprises.
Implications for Car Buyers
This disconnect highlights the increasing risks associated with long loan terms and escalating vehicle prices. The survey suggests that as these trends continue, more car owners could find themselves in troubling financial situations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.