“More borrowers are going underwater on car loans”
November 12, 2019
“Consumers, salespeople and lenders are treating cars a lot like houses during the last financial crisis: by piling on debt to such a degree that it often exceeds the car’s value. This phenomenon—referred to as negative equity, or being underwater—can leave car owners trapped.
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…”
Do not do this. Do not over borrow. Get a car and a house for that matter that’s affordable. Trying to keep up with “Mr. & Misses. Jones” will end in disaster.