A $45,000 loan for vehicle worth $27,000. Seems crazy but it is the reality for lot of people. The question is, is it just corporate greed at lot of different levels or corporate greed supplemented with careless spending patterns. In any case an undeniable outcome is that real people suffer.
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.