Jump to content
News
Reviews
Discussons
Activity
Create New...
Close

  • 💬 Join the Conversation

    CnG Logo SQ 2023 RedBlue FavIcon300w.png
    Since 2001, Cheers & Gears has been the go-to hub for automotive enthusiasts. Join today to access our vibrant forums, upload your vehicle to the Garage, and connect with fellow gearheads around the world.

     

  • William Maley
    William Maley

    By William Maley •

    More Consumers Find Themselves 'Upside Down' On Trade-Ins

      A number of factors play into this

    A record number of consumers are finding themselves 'underwater' when it comes time to trade-in their vehicle - the vehicle is worth less than what they owe on their loan.

    The Detroit Free Press cites a study done by Edmunds revealing that in the second quarter of this year, 32 percent or nearly one-third of vehicles being traded in fall into the 'underwater' category. This isn't good news for consumers since the difference is tacked on to the new vehicle they had their eye on.

     To put this in perspective, the previous high was 29.2% in 2006, around the time where the housing market was reaching its cresting point.

    “There’s been a lot of water building behind this dam for some time because of higher transaction prices, lower down payments and long-term loans," said Greg McBride, chief analyst with Bankrate.com.

    "It’s problematic for the consumer because there’s no foolproof way to eliminate his financial exposure. If the car gets stolen, is totaled or you get new car envy while you’re upside down then it’s a big problem."

    • In October, the average transaction price of a new car was $34,663 according to Kelly Blue Book.
    • The average length of a new car loan hovers around 68 months according to Experian Automotive. This rises to 72 months if it's a subprime buyer - someone whose credit score is below the low 600s.

    Not helping matters is the amount of vehicles being returned from leases, flooding the used car marketplace. This increase is causing dealers not willing to spend a lot of money at auction.

    Source: Detroit Free Press

    Go to articles

    User Feedback

    Recommended Comments



    G. David Felt
    5 minutes ago, A Horse With No Name said:

    ....and keep people from moving back in with mom and dad when they turn 26....

    I have mixed feelings about this as my son once he finished college moved out and never looked back. Successful Graphic designer and loves his life, productive and works fine.

    My daughter also successful as a Benefits HR employee at Tommy Bahama but still lives at home. Has a great relationship with her mom and me and over all productive and successful as she pays her own way. 

    We have have many discussions and she does not see the need to move out. She pays her own way, loves hanging out with us when she does not work out or hang with her friends. 

    I think it really depends on the example set by the parents. You can have kids at home or out that are very successful or you can have kids that suck you dry and cause nothing but problems for you.

    Really depends on how you raise them.

    Link to comment
    Share on other sites
    A Horse With No Name
    2 minutes ago, dfelt said:

    I have mixed feelings about this as my son once he finished college moved out and never looked back. Successful Graphic designer and loves his life, productive and works fine.

    My daughter also successful as a Benefits HR employee at Tommy Bahama but still lives at home. Has a great relationship with her mom and me and over all productive and successful as she pays her own way. 

    We have have many discussions and she does not see the need to move out. She pays her own way, loves hanging out with us when she does not work out or hang with her friends. 

    I think it really depends on the example set by the parents. You can have kids at home or out that are very successful or you can have kids that suck you dry and cause nothing but problems for you.

    Really depends on how you raise them.

    My son lives at home (my 23 year old) because he is saving money for a house.

    I have no problem with them living at home, I have a problem with them doing so because they have no other choice.

    Link to comment
    Share on other sites
    G. David Felt
    6 minutes ago, A Horse With No Name said:

    My son lives at home (my 23 year old) because he is saving money for a house.

    I have no problem with them living at home, I have a problem with them doing so because they have no other choice.

    agree, as long as people are productive and earning an income that supports themselves and pays the bills, if they choose to live with parents because they have longer plans, more power to them. My daughter is also saving for her own house while living with us.

    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.

    ×



  • Support Real Automotive Journalism

    Cheers and Gears Logo

    Since 2001, Cheers & Gears has delivered real content and honest opinions — not emotionless AI output or manufacturer-filtered fluff.

    If you value independent voices and authentic reviews, consider subscribing. Plans start at just $2.25/month, and paid members enjoy an ad-light experience.*

    You can view subscription options here.

    *a very limited number of ads contain special coupon deals for our members and will show

  • Similar Content

  • Posts

    • trinacriabob
      Random Thoughts Thread

      By trinacriabob · Posted

      Good morning This is what I really wanted to share. That's what Californians do ... share. Maybe not museum grade, but it works well. I don't know if that's a Ford, an AMC, or an old Buick Skylark!
    • trinacriabob
      Random Thoughts Thread

      By trinacriabob · Posted

      Maybe I didn't use the right words.  It's overly supple and overly assisted in parking lots and when driving slowly on smaller streets.  It does not communicate much when there are lots of thick walls next to small roads and farms right beside me! After renting it, I read a review and it said that it doesn't corner or track very well, and that started getting annoying last night.   I drove a Citroen C3 here somewhere between 2019 and 2021. I believe I reviewed it.  First, I couldn't believe how smooth it was. It handled well in parking lots and was surprisingly smooth and agile on the highway, too.  It's not like you get two times the smoothness because the car costs two times as much. I have a friend who went for civil engineering at ASU.  He said that they used the same textbooks, for the most part, that they did at Berkeley.  So, with Berkeley being so much more prestigious, and with a much lower acceptance rate, it's not like you get two times a better civil engineering education there.  So my point is that for twice the money, the increase in drivability is not a ratable or linear relationship. I've come to see that the extra money in this BYD is all about the many bells and whistles that take about a week to learn. It's not that impressive on the highway and on rougher roads. I sort of like it on nicely asphalted urban streets at lower speeds and it has been getting respectable fuel mileage. I liked zooming around in that Citroen C3 with the side "Air Bump."  I had asked them for a smaller car instead and they told me that if it had to be automatic, it had to be this one.
    • G. David Felt
      Random Thoughts Thread

      By G. David Felt · Posted

      The part that is now bolded, Italicized and underlined, I am totally confused by. How can it be velvety and yet not as smooth as a C3? I get the disconnected road to cabin and no steering wheel communication at low speeds as it is a hybrid system so not a true drive by wire but also not a true traditional steering wheel system. Hydraulic with electric assist so that is a downside being very vague road feedback via the steering wheel.
    • trinacriabob
      Random Thoughts Thread

      By trinacriabob · Posted

      The "cute" little Nissan Versa fit that bill, surprising me via rentals that it was actually likeable, but production of it ended a few months ago. I was given this bloated BYD Seal SUV automatic last week and that's what I'm driving around Sicily in.  It's a HEV, so I don't push down too hard, and it sips fuel.  Except for its velvety and disconnected road to cabin and steering wheel communication at low speeds, I'm not so sure I like it.  Give me a smaller Citroen C3 with an automatic which is smaller and rides smoothly.
    • G. David Felt
      Random Thoughts Thread

      By G. David Felt · Posted

      Yes idiot47 has said the supreme court failed to be loyal to him. Moron!  

  • Who's Online (See full list)

  • My Clubs

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.

Hey there, we noticed you're using an ad-blocker. We're a small site that is supported by ads or subscriptions. We rely on these to pay for server costs and vehicle reviews.  Please consider whitelisting us in your ad-blocker, or if you really like what you see, you can pick up one of our subscriptions for just $1.75 a month or $15 a year. It may not seem like a lot, but it goes a long way to help support real, honest content, that isn't generated by an AI bot.

See you out there.

Drew
Editor-in-Chief

I've whitelisted
Continue without support

Write what you are looking for and press enter or click the search icon to begin your search