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negative equity

British

noun

the state of holding a property the value of which is less than the amount of mortgage still unpaid

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

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negative equity

This can happen when a buyer trades in a car with negative equity, because it’s likely that what they still owe gets rolled into the new loan.

From MarketWatch ● Aug. 13, 2026

Car companies will often offer incentives to help their trade-in customers offset negative equity, with some brands tending to offer more because their cars depreciate faster.

From MarketWatch ● Apr. 28, 2026

The average age of a trade-in with negative equity is now 4.3 years, according to Edmunds.

From MarketWatch ● Apr. 28, 2026

High pandemic-era car prices and elevated interest rates caused negative equity, leading to longer loan terms for buyers.

From The Wall Street Journal ● Apr. 26, 2026

The increased level of negative equity represents another strain on an auto market already under pressure from pricey vehicles and elevated interest rates.

From The Wall Street Journal ● Apr. 26, 2026

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023