A growing number of drivers are finding themselves upside down on their car loans as car prices drop. According to the Edmunds Q4 2023 Used Vehicle report, trade-ins with negative equity are on the rise.

Here are 3 bullet points from that report:

  • Used car values continue on a downward trend. The average transaction price (ATP) for all used vehicles in Q4 2023 dipped to $28,371, a 4.4% decrease from $29,690 in Q4 2022.

  • Trade-ins with negative equity are on the rise. 20.4% of new vehicle sales with a trade-in had negative equity in Q4 2023 — the highest in two years — compared to 17.7% in Q4 2022 and 14.9% in Q4 2021.

  • Consumers who are upside down on their auto loans owe more than ever before. The average amount owed on upside-down loans climbed to a record high of $6,064 in Q4 2023, compared to $5,347 in Q4 2022 and $4,143 in Q4 2021.

We want to hear from you, are you upside down on your car loan? If so, tell us about it. Fill out the form below and your response could be read on a Channel 4 newscast.