negative equity

noun

: a situation in which the amount of money that a person owes for something (such as a house or a car) is more than the thing is worth

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For example, midsize SUVs, compact SUVs and large trucks made up 19.5%, 17.3% and 10.3%, respectively, of all vehicles traded in with negative equity. Medora Lee, USA TODAY, 16 Oct. 2024 To avoid the negative equity trap, Edmunds recommends sticking with your car for longer and being diligent about regular maintenance to maintain your car’s value. Ben Kesslen, Quartz, 15 Oct. 2024 Edmunds reports more than 1 in 5 consumers with negative equity owe more than $10,000 on their auto loans. Michael Wayland, CNBC, 15 Oct. 2024 More than 24% of all trade-ins toward new vehicle purchases had negative equity, and 22% of those with negative equity owed more than $10,000. Ben Kesslen, Quartz, 15 Oct. 2024 The problem is even worse for EV owners – 46 percent of those folks have negative equity in their electric cars. Andy Kalmowitz / Jalopnik, Quartz, 30 Sep. 2024 According to Rosenberg Research, 29% of all CRE, and 56% of office loans now have negative equity. Robert Barone, Forbes, 30 Mar. 2024 Our findings suggest that the wave of optimistic borrowers between 2021 and mid-2022 may be particularly vulnerable to such drops in expectations if paired with negative equity or job loss. Christos Makridis, Fortune, 22 Mar. 2024 Its latest annual financial report from 2021 shows negative equity of £1.6 million ($2 million). Ryan Hogg, Fortune Europe, 20 Feb. 2024

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“Negative equity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/negative%20equity. Accessed 8 Nov. 2024.

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