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The situation has drastically changed, highlighting a major issue in modern consumer spending. Reports indicate that people are now more upside down on their auto loans than ever before, and recent statistics show that nearly one in four trade-ins for new car purchases are associated with underwater loans. The implications are severe, with many individuals now discovering they owe thousands more than their traded-in vehicle is worth.
Notably, it is not just older vehicles facing this repossession crisis—many of the affected cars are from model years 2019 and later. This underscores a harsh reality: buyers often underestimated the long-term financial viability of their purchases, resulting in vehicles being repossessed after only a year of ownership.