Post #2991 by Steve203 on the US Policy board

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...how many people would simply hand over the keys, and walk away?

Underwater and Sinking Deeper: The Average Amount Owed on Upside-Down Auto Loans Climbed to an All-Time High of $6,905, According to Edmunds

More than one in four new vehicle trade-ins are underwater, a four-year high. 28.1% of trade-ins toward new-car purchases had negative equity, up from 26.6% in Q2 2025 and 24.2% in Q1 2025. This is the highest share Edmunds has on record since Q1 2021, when 31.9% of new-car trade-ins were upside down.

Americans with upside-down car loans owe more than ever. The average amount owed on upside-down loans hit a record $6,905 in Q3, edging past the previous high of $6,880 set in Q1 2025.

Nearly one in three underwater car owners owe between $5,000 and $10,000 in debt — a new record high. 32.9% of negative-equity trade-ins fell into this range in Q3, up from 32.6% in Q2 and continuing a steady climb since last year.

A record share of underwater car loans are carrying five-figure debt. Nearly one in four (24.7%) trade-ins with negative equity carried more than $10,000 in debt in Q3, surpassing the previous high of 24.6% set in Q4 2024. Another 8.3% of trade-ins with negative equity carried more than $15,000 in debt, up from 7.7% in Q2 2025.

https://www.edmunds.com/industry/press/underwater-...

Of course, if they turned in their keys, how do they get to work? The Detroit burb I live in has zero public transit, as a for instance. Meanwhile, automakers pay lip service to "affordable" cars, while cutting their lower priced models to juice their ATP and GP.

Steve

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Surprised folks are only underwater by an average of $7k. A $60k truck loses that as it’s driven off the lot. I see a few folks regretting spending $60k or more on a Model Y 3 or 4 years ago, to find out it’s now a $25k car.

“Meanwhile, automakers pay lip service to "affordable" cars, while cutting their lower priced models to juice their ATP and GP.”

Some manufacturers, e.g. Ford. Chevy has a cheap SUV (made in S. Korea). The Japanese and Korean brands have lots of cheaper cars to choose from. If buyers want a nice new car for <$30k they can get one.

Funny (to me) - the top selling car in the UK is the Ford Puma, a small cross-over. Not sold in the USA.

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Some manufacturers, e.g. Ford. Chevy has a cheap SUV

Ford dropped the Indian built Ecosport CUV a few years ago. They just dropped the US built Escape SUV too. Farley has openly said he doesn't want to be in the two row SUV segment, because there is too much competition for him to charge as much as he wants for them.

I find this piece on YT amusing. The guy is an Australian, and EV proponent. I find it amusing the way he reports statements from CEO Farley, like their use of "affordable" over and over, then throws shade on those claims, because that is not how Farley runs the company: to maximize profit per vehicle, regardless of the impact on market share or overall volume.

$29B Disaster: Ford Cancels EVs, Kills Battery Plant, Turns to Profitable Gas Cars

https://www.youtube.com/watch?v=pQLnVTbjofM&t=586s

Steve

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