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COVID-Era Price Gouging Is Coming Back to Bite Car Dealers—Right on Schedule
['Byron Hurd', 'Caleb Jacobs', 'Adam Ismail', 'Andrew P. Collins', 'Ronan Glon']
The Drive
Edmunds sounded the alarm earlier this year after the number of underwater customers being denied new loans began to spike.
Back in March, we saw a report that more than 25% of buyers carried negative equity from a previous loan.
A driver carrying negative equity has an average monthly payment of $944 per month—$167 more than the average buyer without one.
Over the course of a loan, they paid nearly $6,500 more than the average buyer in interest alone.
That’s 60% more than the average buyer, all for the pleasure of doing it again in three years.