(NewsNation) — Americans are drowning in car debt, and the water's rising fast.

Last quarter, 28% of trade-ins toward new car purchases were underwater, meaning the vehicles were worth less than what was owed on them, according to Edmunds. That's the highest share in four years.

Borrowers with upside-down car loans also owed more than ever — an average of $6,905, up more than 60% from four years earlier.

Ivan Drury, Edmunds' director of insights, said the amount of trade-in debt consumers are carrying should be a "wake-up call."

"Much of this stems from shoppers trading out of vehicles too quickly, or carrying loans taken out during the pandemic car market frenzy, when prices were at record highs," Drury said in a statement.

Those choices have led to more underwater car loans carrying

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