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Nearly a quarter of Americans who traded in a car for a new one was upside down on their loan, Edmunds says. ... For example, midsize SUVs, compact SUVs and large trucks made up 19.5%, 17.3% and ...
The real shocker is that consumers with upside-down car loans owe more money than ever before. ... for example, compared with 3.3 years for gasoline-powered vehicles in fourth quarter in 2024 ...
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For instance, if your car's value has dropped to $25,000 but you still owe $30,000 on your loan, gap insurance would cover that $5,000 difference if your car is totaled or stolen.
Negative equity is a deficit of owner's equity, occurring when the value of an asset used to secure a loan is less than the outstanding balance on the loan. [1] In the United States, assets (particularly real estate, whose loans are mortgages) with negative equity are often referred to as being "underwater", and loans and borrowers with negative equity are said to be "upside down".
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