Upside-down loans are becoming a big problem for new-car shoppers in the U.S. Research by shopping and editorial resource Edmunds found that more than 26 percent of all trade-ins on recent new-car purchases included negative equity on the loan, meaning its owner owes more on the vehicle than it’s worth. And since that backwards cash flow gets rolled into the new car’s financing – which then suffers severe depreciation the moment it’s sold – the problem may only be compounding itself.
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