Car Loan Trends Show Credit Concerns for Americans
Americans are underwater on car trade-ins
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- Written by Banking Exchange staff
Almost a third of trade-ins still carry a balance on the previous car, meaning Americans are underwater on car trade-ins, giving them negative equity.
According to JD Power, the percentage has grown each year for the past five years, with 2026 showing more than a 4% growth.
The troubling trend shows signs that the American consumer is overextended on debt.
More than a quarter of the loans are underwater by more than $10,000.
Tagged under Lending; Feature3; Feature; Consumer Credit; The Economy; Credit Risk;