According to data released by Edmunds, car loan delinquencies have surged to their highest levels in decades as a record number of car buyers trade in vehicles with negative equity. Financial stress is rippling across the U.S. economy, pushing average negative equity on trade-ins to a record high of $6,884 in the second quarter of 2026, up from $6,754 in the second quarter of 2025.
Negative Equity Hits Record Highs for Popular Vehicles
Almost 30% of recent new car buyers were underwater on loans for their trade-ins during the second quarter of 2026, meaning they owed more than their old cars were worth. With new car prices averaging close to $50,000, buyers are going deeper into debt. Jessica Caldwell, Edmunds’ head of insights, noted that consumers are incurring more debt than ever when trading in underwater vehicles. Buyers who financed at 2022’s peak prices are returning to trade in, bringing thousands of dollars in old debt with them.
Edmunds compiled a list of the top vehicles with the highest average negative equity:
- Chevrolet Silverado 1500: Starting price $36,900, average traded age 4.1 years, average negative equity -$8,516.
- Ford F-150: Starting price $40,085, average traded age 4.9 years, average negative equity -$8,417.
- Toyota Tacoma: Starting price $32,545, average traded age 2.8 years, average negative equity -$7,793.
- Nissan Rogue: Starting price $29,490, average traded age 4 years, average negative equity -$7,260.
- Toyota Camry: Starting price $30,195, average traded age 2.9 years, average negative equity -$7,030.
- Toyota Corolla: Starting price $23,125, average traded age 3.2 years, average negative equity -$6,191.
- Chevrolet Equinox: Starting price $28,800, average traded age 4.1 years, average negative equity -$5,668.
- Honda Accord: Starting price $28,395, average traded age 3.8 years, average negative equity -$5,127.
- Honda CR-V: Starting price $30,920, average traded age 3 years, average negative equity -$4,722.
- Ram 1500: Starting price $42,025, average traded age 4.4 years, average negative equity -$8,347.
The Costly Snowball Effect of Elevated Interest Rates
Escaping negative equity is difficult for shoppers who want modern showroom models. According to Caldwell, elevated interest rates create a costly snowball effect. As buyers roll over negative equity, new loan principals swell. Relying on longer loan terms to keep monthly payments down only causes total interest charges to be higher in the long run.
Did you know? According to Edmunds data, nearly 30% of recent new car buyers found themselves underwater on their trade-ins, carrying an average of $6,884 in remaining loan balances into their next purchases.
Frequently Asked Questions
What is negative equity in a car loan?
How much was the average negative equity in 2026?
According to Edmunds, the average amount of negative equity on trade-ins reached $6,884 in the second quarter of 2026.
Which vehicles have the highest negative equity?
Data from Edmunds shows that full-size pickup trucks like the Chevrolet Silverado 1500, Ford F-150, and Ram 1500 carry the highest average negative equity among trade-ins.
What has your experience been with vehicle trade-ins and auto loans recently? Share your thoughts in the comments below, or subscribe to our newsletter for more updates.
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