America's negative equity problem is entering a more expensive phase. While the share of underwater trade-ins toward new-vehicle purchases has edged down since the start of 2026, it remains higher than a year ago and has increased year over year for four consecutive years. Meanwhile, the average amount owed on those vehicles has reached its highest Q3 level in at least a decade, making it increasingly costly for buyers to carry that debt into another purchaseIn Q3 2026, 29.1% of trade-ins with outstanding loans toward new-vehicle purchases were underwater, down slightly from 30.9% at the start of the year but...