Negative equity crisis deepens in US auto market. Nearly 30 percent of drivers trading in vehicles owe an average of 7,200 dollars more than their cars are worth, a 42 percent jump from five years ago. Consumers purchased vehicles during pandemic inflation, now facing steep losses as values declined. To manage affordability, buyers are extending loan terms to 70 months, with monthly payments exceeding 1,000 dollars lasting over eight years. Those rolling negative equity into new loans accumulate additional debt, worsening financial strain. Rising interest rates and vehicle costs compound pressure on an already struggling market, highlighting broader affordability challenges across housing, healthcare, and transportation that reshape household budgets nationwide.
