Tons of US car owners owe more on their vehicles than they are worth: 29% of trade-ins for new-vehicle purchases involved negative equity in Q3 2026, near the highest proportion since Q1 2021. At the same time, the average amount owed on underwater vehicles rose to $7,107, the 3rd-highest on record. This is +$2,960 above the low recorded in Q4 2021 and +$1,850 above pre-pandemic levels. Meanwhile, buyers who rolled over unpaid car debt into new loans took on an average loan balance of $57,235, up +44% from 2019. The average annual percentage rate (APR) for these borrowers was 8.1%, pushing total interest payments over the life of their loans to $16,610, up +83% from $9,093 in 2019. The US is in a car affordability crisis.