Suze Orman warns against trading in cars with negative equity

6 articles · Updated · moneydigest.com · May 6

Edmunds said 30.9% of Q1 2026 new-vehicle trade-ins were underwater, with average negative equity of $7,183, the highest share since Q1 2021.
About 26% of those trade-ins carried at least $10,000 in negative equity and 9.3% topped $15,000, while affected buyers financed an average $55,970, or $12,071 above normal.
Orman said rolling old debt into new loans extends repayment and deepens losses as high rates, rising car prices and longer loan terms make escaping the debt cycle harder.

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