A $45,000 Loan for a $27,000 Ride: More Borrowers Are Going Underwater on Car Loans
Suburbia is full of nice cars these days. But those cars come at a steep price for many.
Debt is a drug.
(From The Wall Street Journal)
Some 33% of people who traded in cars to buy new ones in the first nine months of 2019 had negative equity, compared with 28% five years ago and 19% a decade ago, according to car-shopping site Edmunds. Those borrowers owed about $5,000 on average after they traded in their cars, before taking on new loans. Five years ago the average was about $4,000.