3월 17, 2020
Edmunds estimates that 32 per cent of trade-ins for brand new vehicle purchases in the 1st nine months with this 12 months had “negative equity,” up from 30 % for similar period year that is last. The upside-down shoppers had typical negative equity of more than $4,800 during the time of trade-in, which Edmunds said may be the greatest as it started monitoring such data in 2002.
About 25 % of trade-ins from shoppers purchasing used automobiles additionally had equity that is negative averaging $3,600.
Being upside down on a motor auto loan is comparable to being underwater on home financing, for the reason that the asset securing your debt will probably be worth lower than the mortgage.
State which you owe $20,000 on automobile now valued at $18,000. Which means you’ve got negative equity of $2,000. In the event that you trade in your car or truck for an innovative new automobile, you need to compensate that $2,000 somehow — either by writing a check or rolling the total amount to your loan in the brand new car. It’s going to then take more time to build equity within the new loan, too, meaning you can get stuck in a period of loans with negative equity.
A few facets are converging to generate negative equity, said Ron Montoya, senior consumer advice editor with Edmunds.