A recent report indicates that 30.5% of car buyers with trade-ins owe more than their vehicles are worth, reflecting a 4.2 percentage point increase from the previous year.
This trend suggests potential challenges for automotive dealers and lenders, as higher underwater trade-ins can complicate financing options and inventory turnover.
The current figure, while still below pre-pandemic levels, raises concerns about the sustainability of trade-in values and the overall health of the automotive market.