December 15, 2016
According to the car data experts at Edmunds.com a record number of Americans are making one of the worst financial moves ever. Edmunds.com says that nearly 1 in 3 new car buyers are paid less when they trade in their car than the remaining balance on their car loan. That’s called being “upside down” on a loan: you still owe more on the loan than the car is worth. Edmunds.com says the average car buyer is nearly $5,000 upside down on an existing loan when shopping for a new car. That means that in addition to buying a new car, they have to come up with another $5,000 to pay off their old loan.