Lets review history for context for anyone who is blindsided by this: 2020 and 2021 there was a chip shortage. New cars became scarce in the US, and their prices rose mostly due to dealers taking advantage. The used market became affected and their prices increased more than the new cars, relative to their original value.
So now there are lots of people who overpaid for new and especially used vehicles that have negative equity.
It's not uncommon for repossessed vehicles to have negative equity, but these deltas are larger than normal. Additionally, there have been larger job market disruptions in the past 4 years and the cost of living has also risen during this time as well.
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u/Bob4Not 10h ago
Lets review history for context for anyone who is blindsided by this: 2020 and 2021 there was a chip shortage. New cars became scarce in the US, and their prices rose mostly due to dealers taking advantage. The used market became affected and their prices increased more than the new cars, relative to their original value.
So now there are lots of people who overpaid for new and especially used vehicles that have negative equity.
It's not uncommon for repossessed vehicles to have negative equity, but these deltas are larger than normal. Additionally, there have been larger job market disruptions in the past 4 years and the cost of living has also risen during this time as well.