An increasing number of U.S. citizens with auto loans now have debts that exceed the vehicle value, according to automotive resource firm Edmunds.
“The share of Americans who are upside down on their auto loans is on the rise,” said an Oct. 15 press release from Edmunds.
Upside-down loans are debts where the borrower’s loan balance is higher than the worth of the car. In the third quarter of this year, 24.2 percent of old vehicles traded in for new ones at dealerships had negative equity, up from 18.5 percent in the same period last year, the firm said. People with upside-down loans are said to have negative equity in their vehicles….