You might be able to trade in a car with negative equity, but it doesn’t always make sense Written By Written by Staff Loans Writer, Buy Side Emily Sherman is a staff loans writer for Buy Side, ...

Negative equity happens when the value of an asset, like a car or home, is less than the remaining balance on the loan used to buy it. This is also known as being “underwater” or “upside down” on a ...

That does not mean the vehicles are submerged. In a sense, the drivers are. More than one in four trade-ins had negative equity in the third quarter of 2025, Edmunds reports. In auto industry parlance ...

That does not mean the vehicles are submerged. In a sense, the drivers are. More than one in four trade-ins had negative equity in the third quarter of 2025, Edmunds reports. In auto industry parlance ...

A recent report indicates that an increasing number of car buyers have vehicle trade-ins with negative equity as rising monthly payments and total financing hit all-time high. The report states that ...

Negative equity, or being upside-down on your auto loan, means owing more on your vehicle than its current value. Some dealers might accept trade-ins with negative equity if you pay off what you owe ...