Car owners wayyyyy upside down
24.2% of trade-ins toward new vehicles had negative equity in Q3—up from 23.9% last quarter and 18.5% a year ago.
And the avg. unpaid loan balance is $6,469 – an all-time high.
Basically — most car buyers in 2021-2022 paid above MSRP for their cars due to supply shortages…
But inventory has since recovered, and new car incentives are back –
Pushing used car prices and trade-in values down.
Bottom line: Car owners “underwater” on their loans are less likely to trade in. Without this vital source of used cars, dealers will have to get more creative with inventory acquisition.
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WordPress’d from my personal iPhone, 650-283-8008, number that Steve Jobs texted me on
https://www.YouTube.com/watch?v=ejeIz4EhoJ0
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