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October 13, 2025

What to do if you're underwater on your car loan

  • Edmunds' experts share advice on how to best remedy this situation.
    • By JOSH JACQUOT
    Edmunds

    iStock image
    If you’re already upside down, the simplest way to avoid digging a deeper financial hole is to hold on to your current vehicle and keep making payments.

    More car buyers are finding themselves in a tough spot financially. According to a recent report from Edmunds, more than 26% of new-vehicle trade-ins in the second quarter of 2025 had negative equity — the highest share in more than four years.


     
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