Upside-Down Auto Loans Climb to Record Average of $6,905: Report

Nearly one in four cars traded in with negative equity had more than $10,000 in debt.

Used cars are offered for sale at a dealership in Chicago on July 11, 2023. Scott Olson/Getty Images

The average amount car owners owe on upside-down loans—where people owe more than the value of their vehicle—hit a record high of $6,905 in the third quarter of 2025, exceeding the previous high set in the first quarter, industry expert Edmunds said in a statement published on Oct. 15.

“A growing share of owners are trading in vehicles worth less than what they owe—and the debt they are rolling forward is only growing,” the company said.